Oracle is currently in discussions with Skydance Media to reach a major software deal following the closing of the latter’s pending $8 billion merger with Paramount Global, according to Bloomberg.
The outlet reported that the agreement, which would be worth roughly $100 million per year, would see Paramount and its subsidiaries, such as CBS and MTV, use Oracle’s cloud software. It added that the details of the agreement are subject to change.
Representatives for Skydance declined to comment, while Oracle and Paramount did not immediately return TheWrap’s request for comment.
Skydance is founded by David Ellison, the son of the software giant’s chairman Larry Ellison. News of the talks with Oracle come after the younger Ellison recently met with FCC chairman Brendan Carr as he looks to secure regulatory approval of the merger with Paramount. The elder Ellison is notably providing $6 billion in financing for the deal.
Skydance has previously partnered with Oracle on its “studio in the cloud” initiative, which has been used on Skydance Animation projects such as “Spellbound.” Per Bloomberg, Skydance spent $2.2 million on Oracle’s cloud infrastructure and platform products in its fiscal year ending in May 2024.
David Ellison previously revealed in a call with investors last year that they would look to turn Paramount from a struggling media conglomerate into a technological leader in the entertainment space by “rebuilding” Paramount+ to increase time spent, offer subscribers improved recommendations and reduce churn while utilizing artificial intelligence to “turbocharge content creation capabilities” and lower costs.
Skydance also previously revealed that it identified $2 billion in cost efficiencies and synergies as they look to manage Paramount’s declining linear business, which included $500 million in cost savings under the media giant’s current leadership.
The $500 million in cuts included workforce reduction of 15% and the shuttering of Paramount Television Studios. Last month, Paramount revealed it would cut another 3.5% of its workforce as it prioritizes investments in growing its streaming business as the linear TV business declines.
After triggering its second automatic 90-day extension, the Paramount-Skydance deal’s closing deadline has been pushed to Oct. 6. If the deal is not closed by then, the parties would have the option to terminate the deal, which would not be subject to the agreement’s $400 million breakup fee.
