This morning, Oracle announced plans to acquire a data storage company called Pillar Data Systems for an undisclosed amount.
The funny part: Pillar is mostly owned by Larry Ellison, Oracle’s founder, CEO, and largest shareholder.
According to the SEC filing announcing the deal, Pillar owed Ellison $544 million from loans and interest. That loan will be converted into preferred stock, which will pay dividends at the rate of 1.5% for the next three years.
Ellison also already owns 55% of Pillar’s common (non-preferred) stock.
Ellison also has a chance to earn money under a earn-out plan if Pillar’s revenues exceed its losses for the next three years.
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