Paramount, newly controlled by Skydance, and TKO Group Holdings have struck a seven-year, $7.7 billion deal for UFC’s U.S. media rights that dramatically changes the trajectory of both organizations.
For UFC, the deal means the end of its long-standing pay-per-view model. Its marquee numbered events and Fight Nights will instead move starting next year to the Paramount+ streaming platform—with some simulcasting on the CBS broadcast television network.
Paramount, meanwhile, is making its first big sports-rights deal just days after closing its $8 billion merger with Skydance, one fraught with political overtones after settling an extended legal battle with U.S. President Donald Trump. The company was also able to bring the UFC rights away from ESPN, which made its own separate agreement with TKO last week for WWE rights.
“Rarely do opportunities arise to partner on an exclusive basis with a global sports powerhouse like UFC,” Paramount chairman and CEO David Ellison said. Ellison had been spotted at multiple UFC events in recent months, raising speculation about a potential deal.
Deal Terms
The deal, running through 2032, will see the annual rights payments weighted more toward the back end of the term. Overall, though, the yearly average doubles the $550 million that ESPN currently pays for UFC rights.
Paramount also said it intends to pursue UFC’s rights in non-U.S. countries as they become available.
“Our decade-long journey with UFC has been defined by continuous growth and expansion, and this agreement is an important realization of our strategy,” said TKO executive chair and CEO Ari Emanuel. “We believe wholeheartedly in David’s vision and look forward to being in business with a company that will prioritize technology as a means to enhance storytelling and the overall viewing experience.”
The stock market cheered the agreement on both ends. TKO shares rose nearly 5% in early Monday trading, extending a 40% boost over the past 12 months. The newly formed Paramount Skydance increased by about 1% in initial Monday activity.
More Politics
The Paramount-UFC deal also likely extends the overlap between the two entities and the Trump White House after Paramount’s recent settlement with Trump that included a series of concessions, perhaps most notably the creation of an ombudsman position to oversee CBS News content for bias.
UFC president Dana White has been close to Trump, including introducing him on the final night of last year’s Republican National Convention. The Trump Administration and UFC are also in active talks to stage a mixed-martial-arts competition on the White House grounds as part of celebrations marking the 250th anniversary of U.S. independence. That event, if it happens, could be streamed on Paramount+ as part of the new rights deal.
On a parallel path, TKO is also working with political leaders in Washington to help advance legislation that would support its planned move into boxing.
