In a landmark move for sports and streaming, Skydance’s Paramount (PARAA) has secured a seven-year, $7.7 billion deal with TKO Group (TKO) for exclusive U.S. media rights to all Ultimate Fighting Championship (UFC) matches, starting in 2026. The agreement, announced Monday, marks a significant shift for the mixed martial arts (MMA) giant and underscores the growing value of live sports content in the streaming era. With this UFC will end Pay-Per-View model and switch to putting it all on Paramount+.
Under the terms of the deal, Paramount’s streaming platform, Paramount+, will exclusively carry UFC’s 13 marquee pay-per-view events annually, alongside 30 “Fight Night” events. Additionally, Paramount will simulcast select UFC fights on its CBS broadcast network during Saturday prime-time slots, broadening the sport’s reach to traditional television audiences. The deal represents a substantial financial leap from UFC’s previous agreement with Disney’s ESPN, which was valued at $550 million per year. Paramount’s new pact averages $1.1 billion annually, doubling the previous fee and reflecting the surging popularity of MMA.
The agreement moves UFC away from the pay-per-view model that characterized its ESPN deal, a change TKO President and Chief Operating Officer Mark Shapiro hailed as transformative. “Partnering with a company that puts our premium content front and center without extra charges is a game changer,” Shapiro said. The shift is expected to make UFC more accessible to fans, potentially boosting viewership and engagement.
The deal comes on the heels of Skydance’s acquisition of Paramount, finalized days ago, though negotiations with TKO began in June after UFC’s exclusive negotiating window with ESPN expired. Paramount Chairman and CEO David Ellison, who has been spotted at UFC events in Miami and Las Vegas, emphasized the strategic importance of the partnership. “UFC’s year-round content is a powerful tool to drive engagement, revenue growth, and subscriber acquisitions for Paramount+,” Ellison said. He also signaled Paramount’s intent to pursue international UFC rights as they become available, further expanding the company’s global footprint.
TKO, formed through the merger of UFC and World Wrestling Entertainment (WWE), is riding a wave of success. The company recently secured a $1.6 billion, five-year deal with ESPN for WWE content and a $5 billion, 10-year pact with Netflix for WWE’s.
The deal faced competition from other bidders, though neither party disclosed specifics. Meanwhile, ESPN, which lost UFC rights, softened the blow with its new WWE agreement. For Paramount, the UFC deal is a bold step to solidify its streaming and broadcast offerings, positioning the company as a major player in live sports.
As the MMA fan base continues to grow, Paramount’s investment signals confidence in UFC’s ability to drive new subscribers to Paramount+. With CBS’s broadcast reach and Paramount+’s streaming capabilities, the partnership could redefine how fans experience one of the world’s fastest-growing sports.
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