Oracle to Secure $100M Annual Deal with Skydance-Paramount for Cloud Services

Oracle Corporation (ORCL.US) is in advanced discussions with Skydance Media LLC to finalize a significant software agreement. This deal, valued at approximately $100 million annually, is set to take effect once Skydance completes its acquisition of Paramount Global (PARA.US). The agreement will see Paramount and its subsidiaries fully adopt Oracle's cloud software services.

Skydance Media, founded by David Ellison, the son of Oracle's Chairman Larry 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 $8 billion cash and investment acquisition.

If the agreement is finalized, the merged entity, Skydance-Paramount, will become a core cloud services client for Oracle. The transition of high-memory audio-visual content from Paramount's platforms, such as 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 currently awaiting final approval from the Federal Communications Commission. Last week, David Ellison made a special presentation to the FCC Chairman and other commissioners. Notably, Paramount recently settled a lawsuit alleging media bias by CBS, which has raised questions from senators about the potential implications for the acquisition.

Oracle, a leading database software company, has been expanding its presence in the cloud computing market by focusing on clients in the artificial intelligence sector. Its enterprise clients include prominent tech companies such as TikTok, Zoom, and Uber. Sources close to the matter emphasized that the final terms of the agreement may still be subject to change.