Oracle in talks with Skydance for $100M/year cloud deal for Paramount.

Oracle is in talks with Skydance for a $100M/year deal for Paramount to use Oracle's cloud software, potentially saving Paramount hundreds of millions of dollars. The deal could be finalized if the Skydance-Paramount merger goes through, and is expected to be a significant revenue boost for Oracle.

Oracle Corporation (NYSE: ORCL) is reportedly in discussions with Skydance Media for a major software deal, according to Bloomberg. The agreement, which is expected to be worth about $100 million per year, would see Paramount Global (NASDAQ: PARA) and its subsidiaries use Oracle’s cloud software. This deal is contingent upon the successful completion of Skydance's acquisition of Paramount, which is currently awaiting final approval from the Federal Communications Commission (FCC).

The potential agreement would make the combined Skydance-Paramount entity a major cloud client for Oracle, potentially saving Paramount hundreds of millions of dollars in costs as they transition their high-memory audio-visual content to Oracle’s cloud servers. David Ellison, the founder of Skydance and son of Oracle’s chairman Larry Ellison, has expressed his intention to enhance Paramount's operational efficiency through technological innovation [1].

Skydance has previously invested in Oracle’s cloud infrastructure and platform products, spending $2.2 million during the fiscal year ending in May 2024. The elder Ellison is providing financial support for the $80 billion cash and investment acquisition of Paramount. The final terms of the agreement are still subject to change, and neither Skydance nor Oracle has commented on the matter [2].

The acquisition of Paramount by Skydance, announced last year, is still awaiting final approval from the 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 [3].

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 potential deal with Skydance is expected to be a significant revenue boost for Oracle, given the media giant's extensive assets and content [4].

References:
[1] https://www.ainvest.com/news/oracle-drops-3-01-skydance-paramount-deal-talks-2507/
[2] https://seekingalpha.com/news/4469702-oracle-is-said-to-be-in-talks-for-100-million-skydance-paramount-cloud-deal
[3] https://ca.finance.yahoo.com/news/oracle-talks-paramount-skydance-100-160128314.html
[4] https://nypost.com/2025/07/18/media/ex-cbs-news-boss-david-rhodes-in-talks-to-return-after-paramount-skydance-deal-closes-report/