Larry Ellison, co-founder of Oracle Corporation, expanded his borrowing significantly this year by pledging large blocks of shares from Oracle and several other companies as collateral, according to regulatory filings in California. The move enabled Ellison to avoid selling stock—an action he had initially considered to finance his son David Ellison’s takeover of Warner Bros. Discovery—and instead access liquidity while retaining ownership of his shares.
Ellison's borrowing spree involved putting up shares from Oracle, Tesla, SpaceX, and Paramount as security to secure loans from at least five global banks: Citigroup, HSBC, JPMorgan, UBS, and BNP Paribas. In September, Oracle announced that Ellison had abandoned a plan to sell roughly $7.5 billion worth of stock, opting to increase his borrowing instead.
The filings revealed that Ellison has pledged 413 million Oracle shares, which Oracle valued at approximately $58 billion, to back his personal indebtedness. This figure increased from 346 million shares disclosed a year earlier. Market analysts estimate that loans secured by such highly liquid stocks typically amount to around half their market value at the time of the loan. Based on this, the disclosed 87 million Oracle shares pledged to specific banks could translate into credit lines worth roughly $5.7 billion, although loan-to-value ratios may vary, especially considering the size and concentration of the holdings.
Ellison, whose net worth Forbes estimates at around $169 billion, holds close to a 40% stake in Oracle, most of which remains unencumbered by borrowing. The bank filings offer a rare glimpse into the growing extent of his leverage as he prepared to finalize the Warner Bros. Discovery merger, which closed on October 6.
The increase in borrowing activity was particularly notable in the final months leading up to the merger. Citigroup and JPMorgan expanded existing credit facilities—JPMorgan amended a loan in October to include shares of SpaceX and Paramount Skydance, the company formed from the acquisition that resulted in Warner Bros. Discovery’s new structure. Citigroup similarly raised its collateral on Oracle shares from 30 million to 45 million and added SpaceX and Paramount Skydance shares to its security interests. Ellison’s Tesla shares were also pledged, with Citigroup backing 1.5 million shares, down from three million previously. Ellison, who was on Tesla’s board from 2018 to 2022, has publicly described CEO Elon Musk as a close friend.
Other lenders also hold securities on Ellison’s shares: UBS reported security over 30 million Oracle shares as of May 2025, while BNP Paribas had liens on 12 million Oracle and one million Tesla shares. HSBC, which first extended loans against Oracle stock in 2013, maintains security on some shares though it did not specify quantities.
Oracle’s board governance committee regularly reviews Ellison’s pledging arrangements and has concluded that he has the capacity to repay his loans without needing to sell pledged shares. This borrowing approach aligns with a common wealth preservation strategy among billionaires known as "buy, borrow, and die," allowing asset holders to maintain ownership and defer capital gains taxes.