Oracle Drops 3.01% Amid Skydance-Paramount Deal Talks

Oracle's stock price dropped 3.01% in pre-market trading on July 22, 2025, amid ongoing negotiations with Skydance Media LLC for a significant software agreement. This deal, valued at approximately $1 billion annually, is set to take effect after Skydance completes its acquisition of Paramount Global.

Skydance, founded by Larry Ellison's son David Ellison, has already invested $2.2 million in Oracle's cloud infrastructure and platform products during the fiscal year ending in May 2024. Larry Ellison is providing financial support for the $80 billion cash and investment acquisition.

If the agreement is finalized, the merged Skydance-Paramount entity will become a core cloud service client for Oracle. The transition of high-memory audio-visual content from Paramount's platforms, including CBS and MTV, to Oracle's cloud servers is expected to save the company billions of dollars in costs. David Ellison has previously stated his intention to enhance Paramount's operational efficiency through technological innovation.

The acquisition of Paramount by Skydance, announced last year, is still awaiting final approval from the Federal Communications Commission (FCC). Last week, David Ellison made a special presentation to FCC Chairman Brendan Carr and other commissioners. Notably, Paramount recently settled a lawsuit alleging media bias by CBS, which has raised questions from senators about the acquisition's relevance.

As a leading database software company, Oracle has been expanding its presence in the cloud computing market by focusing on AI-driven clients. Its enterprise client list includes tech giants like TikTok, Zoom, and Uber. The final terms of the agreement are still subject to change, and neither Skydance nor Oracle has commented on the matter.