Matt Flynn is indeed headed to Oakland, in exchange for a 2014 draft pick and conditional 2015 draft pick:
The Seattle Seahawks and Oakland Raiders are completing a deal today that will send quarterback Matt Flynn to the Raiders in exchange for a fifth-round 2014 draft pick and a conditional pick in 2015.
In Flynn, the Raiders acquire a quarterback who will earn roughly half as much in 2013 as Carson Palmer, whom the team is close to trading to Arizona for a late-round pick, according to Yahoo’s Mike Silver. Fox Sports’ Jay Glazer first reported the Flynn deal.
As they say, looks like the previous speculation about Palmer being cut was incorrect. He's instead being traded to Arizona:
The second expected trade of a quarterback Monday is about to go down. The Oakland Raiders are finalizing an agreement to send Carson Palmer to the Arizona Cardinals, a person informed of the talks between the sides told USA TODAY Sports.
The person, who spoke on condition of anonymity because the trade isn't yet complete, said the teams discussed a swap of late-round picks in 2013 while the Raiders would also pick up another Day 3 draft selection.
As part of the agreement, the person said Palmer will sign a reworked deal with the Cardinals that will pay him $8 million this season along with incentives that will allow him to potentially earn more money.