Oracle's shares fell more than 3%, reportedly negotiating a $1 billion cloud software agreement with Skydance.

On Tuesday morning Eastern Time, Oracle's stock price fell more than 3% at one point. Prior to this, there were reports that the company is in talks with Skydance Media for a $1 billion annual cloud software agreement, contingent on Skydance successfully acquiring Paramount Global. If the deal goes through, Oracle could become the main cloud service provider for the merged entity, bringing significant cost savings to Paramount.