Oracle To Exit Ad Biz

Oracle is exiting the advertising business. In a conference call with investors to discuss quarterly earnings, CEO Safra Catz revealed that the company's ad income dropped to about $300 million in FY24.

According to an industry report, the company made $2 billion in ad income two years ago, so the decline in that revenue is substantial. However, at that time, business was only expanding by about 2 per cent annually, and in 2022, numerous staff had been let go as part of a reorganisation process.

Catz did not discuss how the business would close on his call.

In the past, Oracle has bought a number of businesses to expand its advertising business, including Virtue, Eloqua, BlueKai, DataLogix, and Moat.

Investors don't appear to be as alarmed by the announcement, though, as Oracle shares have been rising as a result of recent significant agreements like Microsoft's extension of Azure into Oracle cloud to appease OpenAI. Additionally, the organisation benefited greatly from Google Cloud and Oracle's multi cloud collaboration.