Oracle Corporation (ORCL.US) has reached a billion-dollar cloud service agreement with Skydance-Paramount (PARA.US).

According to sources familiar with the matter, Oracle Corporation is currently in negotiations with Skydance Media LLC regarding a major software agreement that will take effect after the latter completes its acquisition of Paramount Global (PARA.US). This annual contract, worth approximately $100 million, will see Paramount and its subsidiaries fully adopt Oracle Corporation's cloud software services. It is understood that Skydance was founded by David Ellison, the son of Oracle Corporation's chairman Larry Ellison. The company's financial reports show that in the fiscal year ending in May 2024, Skydance has invested $2.2 million in Oracle Corporation's cloud infrastructure and platform products. The elder Ellison is providing funding support for this acquisition involving $8 billion in cash payment and investments. Sources indicate that if the agreement is reached, the merged Skydance-Paramount will become a core cloud service customer of Oracle Corporation. Considering that Paramount's numerous high-memory audio and video content from media platforms like CBS and MTV will be migrated to Oracle Corporation's cloud servers, this technical upgrade could potentially save Paramount hundreds of millions of dollars in costs. David Ellison has previously stated that he aims to improve Paramount's operational efficiency through technological innovation. The Skydance-Paramount merger announced last year is still pending final approval from the Federal Communications Commission (FCC) in the United States. Last week, David Ellison made a special presentation to FCC Chairman Brendan Carr and other commissioners. It is worth noting that Paramount recently settled a lawsuit with CBS News Media over allegations of bias, which has raised questions from senators about the relevance of the merger. As a database software giant, Oracle Corporation has been expanding in the cloud computing market in recent years by focusing on AI clients. Its enterprise customer list includes tech companies like TikTok, Zoom, and Uber Technologies, Inc. Skydance declined to comment, and Oracle Corporation and Paramount have not responded to inquiries. Sources emphasize that the final agreement terms may still be subject to change.