In a strategic move under its new leadership, Paramount has finalized a massive $7.7 billion agreement with TKO Group Holdings to secure media rights for the UFC’s mixed martial arts events in the U.S.
The seven-year deal, announced on Monday, is a significant step for the company as it aims to strengthen its streaming platform, Paramount+, and establish itself as a major player in the competitive streaming market.
Starting in 2026, the deal will bring 13 marquee UFC events and 30 fight nights to Paramount+, the company’s streaming service. Additionally, some of these events will air on CBS, the network owned by Paramount’s parent company.
This agreement represents a major shift, as it moves away from the UFC’s traditional pay-per-view model. Instead, all UFC events will be available to Paramount+ subscribers, giving the streaming service access to some of the most popular live sports programming.
A Strategic Move to Attract Younger Audiences
The new agreement highlights Paramount’s strategy to bolster its content offerings, especially as it faces increasing competition from streaming giants like Netflix and Amazon. The UFC is a particularly valuable addition because it appeals to a younger, predominantly male demographic—an audience that traditional TV programming has struggled to attract.
Paramount’s Chairman, David Ellison, sees UFC’s high-energy events as a key driver for Paramount+, which is looking to expand its subscriber base and ensure long-term loyalty among viewers. “Live sports continue to be a cornerstone of our broader strategy—driving engagement, subscriber growth, and long-term loyalty,” Ellison said in a statement.
UFC’s consistent, year-round programming will contribute more than 350 hours of content annually, adding substantial value to the service.
A High-Value Deal Exceeding Expectations
The deal’s worth surpasses initial Wall Street expectations, with analysts originally forecasting a value between $875 million and $925 million per year. However, Paramount’s $1.1 billion per year commitment more than doubles the current agreement between UFC and ESPN, which expires in 2025.
The agreement also positions TKO Group, which owns UFC, as a premier sports asset, especially as it continues to attract a loyal fan base in the U.S., where UFC draws nearly 100 million fans.
TKO’s stock saw an impressive surge following the announcement, jumping 10% to $180 per share, signaling investor confidence in the new media rights deal. In contrast, shares of Paramount saw a slight dip of 3.7%, closing at $10.12, reflecting concerns about the financial strain of the large investment.
Ellison’s Leadership and Relationship with TKO’s Executives
David Ellison, who recently became the chairman and CEO of Paramount after his Skydance Media acquisition of the company, is taking an aggressive approach to expanding Paramount’s content portfolio.
Ellison’s leadership has been marked by a focus on securing high-value deals, including a $1.25 billion agreement to secure exclusive streaming rights for South Park. The UFC deal continues this trend, demonstrating Ellison’s ambition to position Paramount+ as a must-have platform for sports fans.
Ellison’s close professional relationship with TKO executives, including Ari Emanuel, the executive chairman of TKO, has played a pivotal role in making this deal happen. Emanuel, a former agent for UFC president Dana White and a close confidant of Ellison, was instrumental in facilitating the partnership between Paramount and TKO.
Continuing Partnership with ESPN for WWE Rights
Though Paramount has secured UFC rights, ESPN, owned by The Walt Disney Co., will maintain its partnership with TKO for WWE content. ESPN recently signed a five-year, $1.6-billion deal to carry WWE events like WrestleMania and SummerSlam, expanding its reach in the sports entertainment arena.
The agreement allows ESPN to offer WWE programming through its direct-to-consumer platform, which will launch later this month.
Looking Forward: The Impact of UFC on Paramount’s Streaming Strategy
Paramount’s new UFC deal will have a profound impact on its streaming strategy. By offering exclusive access to UFC events, the company is aiming to attract more subscribers and engage viewers who are drawn to live sports.
With the growing trend of streaming services vying for exclusive sports content, securing the UFC rights solidifies Paramount’s position in the competitive streaming landscape.
As the deal progresses, fans can expect more action-packed content on Paramount+, with UFC events providing the kind of real-time excitement that drives subscriber growth. For TKO, the deal underscores the immense value of the UFC’s brand, positioning it as a cornerstone for future sports media negotiations.
The $7.7 billion deal between Paramount and TKO Group Holdings for UFC media rights marks a new era for both companies. As Paramount expands its content offerings to attract more subscribers, UFC’s high-profile, year-round events will be a key pillar of its streaming strategy.
With live sports becoming increasingly crucial in the battle for streaming dominance, this deal is a game-changer for Paramount’s long-term success.
