Ellison, CEO of software giant Oracle (Nasdaq: ORCL), reportedly paid between $500 million and $600 million for the 141 sq mile Pineapple island, Reuters reported Thursday.
Lanai, home to around 3,200 residents, was previously owned by billionaire David Murdock, who bought the island in 1985 through private company Castle & Cooke.
It is my understanding that Mr Ellison has had a long standing interest in Lanai, Gov. Neil Abercrombie said on Wednesday.
He is also a businessman whose record of community involvement in medical research and education causes is equally notable. We look forward to welcoming Mr. Ellison in the near future.
Ellison, 67 is ranked by Forbes Magazine as the sixth richest man with a fortune of $36 billion. His shares of Redwood Shores, Calif.-based Oracle, which he founded in 1967 as Software Development Corp., are valued around $32 billion, based on Thursday's price. Over the years, he has sold shares to acquire homes as well as yachts in which he has raced in the Americas Cup and other events.
Castle & Cooke is the island's primary employer, running hotels, golf resorts and other business on Lanai.
According to reports, the company is losing around $40 million a year running its island operation.
Ellison bought 98 percent of the island, known for its pineapple plantations, with the remaining 2 percent not owned by Castle & Cooke.
Lanai is the smallest publicly accessible island in Hawaii and is known for its luxurious homes and two Four Seasons hotels.
Fellow software titan and Microsoft (Nasdaq: MSFT) co-founder Bill Gates famously booked every hotel room on the island for his 1994 wedding there.
Oracle shares traded at $28.57, up 8 cents, in early Thursday activity.