The Most Ruthless CEO in Tech

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• US ban on Chinese tech in cars: The Department of Commerce has proposed banning Chinese and Russian technology in internet-connected vehicles due to national security concerns.

STORY

🏢 The Oracle of Hostile Takeovers

The Big Idea: Aggressive tactics and hostile takeovers can lead to unprecedented success in the tech world.

Why it Matters: Larry Ellison's approach turned Oracle into a $445 billion behemoth, reshaping the entire tech industry.

Oracle's humble beginnings belied its future dominance. In 1977, Larry Ellison co-founded Software Development Laboratories, which would later become Oracle Corporation. The tech industry of the time was dominated by friendly mergers and acquisitions, but Ellison saw an opportunity in a more aggressive approach.

Ellison's ruthless reputation began to take shape in the 1990s. He hired private investigators to expose Microsoft's alleged funding of seemingly independent research groups during their antitrust trial. This bold move set the tone for Oracle's future tactics.

The PeopleSoft takeover marked a turning point for Oracle. In 2003, Ellison launched a hostile takeover bid for PeopleSoft. Despite fierce resistance and an 18-month legal battle, Oracle acquired PeopleSoft for $10.3 billion in 2005. This success validated Ellison's belief that aggressive tactics could yield massive returns.

Ellison developed key principles that drove Oracle's success:

• Identify undervalued assets, even if they're not for sale

• Use legal and financial pressure to force negotiations

• Leverage media attention to sway public and shareholder opinion

• Persistence pays off – be prepared for long, drawn-out battles

• Sometimes, it's necessary to be the "bad guy" to win

• Success often comes at the expense of competitors

Ellison's philosophy became Oracle's blueprint for dominance. These principles, along with Ellison's belief that "It's not enough to win. Everyone else must lose," guided Oracle's growth through both hostile takeovers and strategic acquisitions, consolidating power in the tech industry.

Financial engineering further boosted Ellison's control and wealth. He implemented a massive $155 billion buyback program, reducing Oracle's outstanding shares and increasing his own stake from 27 percent to 43 percent. This move significantly boosted his personal wealth.

The results of Ellison's strategy are staggering. The impact of his work is evident in Oracle's current $445 billion market cap and his own net worth of approximately $190 billion. What started as a small software company is now a global tech powerhouse, largely due to Ellison's aggressive and unconventional strategies.

Key takeaway: In business, sometimes the most profitable path is also the most confrontational.

Go Deeper: Oracle Goes Hostile After PeopleSoft (Forbes)

INSIGHT

💰 From Software Startup to $445 Billion Empire

Let's break down Oracle's journey from tech startup to industry giant:

1977 - Initial investment: $2,000 of personal savings to co-found Software Development Laboratories.

1990s - Oracle becomes a major player in the database market.

2024 - Current valuation: Oracle's market cap reaches approximately $445 billion.

Let's examine Oracle's current position:

• a) Database and cloud services: Primary revenue source

• b) Enterprise software: Significant contributor to overall revenue

• c) Hardware: Acquired through Sun Microsystems takeover

• d) Consulting and support services: Steady income stream

Total estimated annual revenue: Over $40 billion

Now, compare that to the early days:

1977 annual revenue: $0 (pre-revenue startup) 1990 annual revenue: $916 million

2024 annual revenue: Over $40 billion

Key factors in this growth:

• Aggressive Acquisitions: Used hostile takeovers to eliminate competition and acquire valuable assets.

• Innovation: Continuously adapted to new technologies, especially in cloud computing.

• Strategic Partnerships: Formed alliances with other tech giants when beneficial.

• Marketing: Leveraged Ellison's personality to create a strong brand identity.

• Long-term Vision: Made moves that might not pay off for years or even decades.

• Talent Acquisition: Acquired top talent through company takeovers. Financial

• Engineering: Used stock buybacks to increase Ellison's control and boost stock price.

Oracle's financial success demonstrates how aggressive tactics, innovation, and long-term thinking can transform a small startup into an industry titan.

From a $2,000 investment to a $445 billion valuation, Oracle's growth offers valuable lessons for any business looking to dominate its market.

ACTION

💰 Being Assertive by Saying “No”

There are many ways to be “Assertive AF” like Larry Ellison, but one of the first steps is learning when and how to say a polite “No,” an assertive “Hell no,” and even the occasionally “F**k no.”

1. Develop a decision-making framework

   • Create default responses for common requests

   • Use "If it's not a clear yes, it's a clear no"

2. Practice the "soft no"

   • Example: "I'm not able to commit to that right now, but I'll let you know if anything changes"

   • Example: "I don't have the bandwidth, but here's a resource that might help"

3. Use the "Hell Yeah or No" principle

   • If it's not a "Hell Yeah!", it's a "No"

   • Apply this to new commitments and opportunities

4. Set clear boundaries

   • Communicate your priorities and time constraints

   • Be firm but polite in your refusals

5. Offer alternatives when possible

   • Suggest other resources or people who might help

   • Propose a scaled-down version of the request if appropriate

Saying no to the wrong things allows you to say yes to the right things.

Go Deeper: Here’s Derek Siver’s “Hell Yeah or No” Framework to help you decide what’s worth doing.

One Funny Thing 🤣