Oracle is reportedly engaged in negotiations with Skydance Media for a software agreement, which hinges on the latter’s planned acquisition of Paramount Global.

The deal could be valued at approximately $100m annually, Bloomberg reported, citing people familiar with the discussions.

This potential agreement would see Paramount and its subsidiaries utilising Oracle’s cloud software.

Representatives from Skydance declined to comment on the report.

Skydance Media, founded by Oracle Chairman Larry Ellison’s son David Ellison, already utilises Oracle software. It spent $2.2m on cloud infrastructure and platform products in the fiscal year ending May 2024.

The report added that Larry Ellison is providing financial support for Skydance’s acquisition, which includes $8bn in cash payments and investment.

The potential deal would position the new Skydance-Paramount entity as a key client for Oracle’s cloud services. This could lead to substantial cost savings for Paramount as they modernise their systems.

Paramount owns numerous media assets, including CBS and MTV networks, which produce extensive video and audio content that would be stored on Oracle’s cloud servers.

The merger between Paramount and Skydance, announced last year, still awaits approval from the Federal Communications Commission (FCC). In efforts to secure the approval, Ellison recently met with FCC Chairman Brendan Carr and other officials.

Oracle, known for its database solutions, has been expanding its presence in the market for cloud computing and storage services, targeting clients with a focus on AI.

The company counts TikTok, Zoom Communications, and Uber Technologies among its major customers. Recently, Oracle secured a new agreement with OpenAI to provide 4.5GW of computing power in a deal worth approximately $30bn annually.