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Larry Ellison Relinquishing Control of NetSuite? I Doubt It.
In an SEC filing, NetSuite announced that controlling shareholder Larry Ellison was reducing his influence on the SaaS company trying to go public by placing his shares into a "lock box" managed by an appointed third party. Ellison owns about 61% of NetSuite shares, and his children own 13%. Given that NetSuite and Oracle are competitors, have had a difficult to understand and less than arms length relationship for the past several years, there appeared to be both conflicts of interest on the part of Ellison and concerns by upcoming IPO buyers.
The NetSuite IPO has been long delayed - seemingly from events such as an unexpected change in accounting firms to the stepped up Larry Ellison conflict of interest concerns raised by many. However, does Larry Ellison lessen control with voting shares held by an administrator? I doubt it. Don't forget that NetSuite co-founder Evan Goldberg and current CEO Zach Nelson are former Larry protégé's from mother company Oracle. Nelson seems inclined to please Larry in any way possible - including being the banner sponsor of Larry's most recent racing yacht - a complete embarrassment for Larry and a (predictable) multi-million dollar advertising debacle for NetSuite.
Posted by: Jeffrey on 10.31.07
Posted in: NetSuite, Rants
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