Oracle share price drops as Larry Ellison steps down as chief executive

 
Joe Hall
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Ellison co-founded what would become Oracle in 1977 (Source: Getty)

Lary Ellison will step down as chief executive of Oracle, the software company announced today.

The co-founder of the $185bn (£113bn) company, will be replaced by Mark Hurd and Safra Cruz who will both serve as chief executives, but with different responsibilities. Mr Ellison will become executive chairman and chief technology officer.

The 70-year-old co-founded the software-making company with Bob Miner and Ed Oates in 1977. According to Forbes, Mr Ellison is the fifth richest man in the world with a net worth of $51.3bn.

Ms Catz will oversee the manufacturing, legal and finance operations at Oracle, while Mr Hurd will be in charge of its sales, service and business departments. Mr Ellison will continue to run the software and hardware engineering teams.

The billionaire said in a statement:

Safra and Mark will now report to the Oracle Board rather than to me.
All the other reporting relationships will remain unchanged. The three of us have been working well together for the last several years, and we plan to continue working together for the foreseeable future. Keeping this management team in place has always been a top priority of mine.
In June Oracle spent $5.3bn on hospitality software maker Micros. Micros sells internet connected cash registers along with software and technical service.
Shares in the company dipped as much as three per cent in after-hours trading following the announcement, before recovering slightly. Per index shares are priced $40.82, a 1.76 per cent drop on the a close price of $41.55.

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