Skydance’s Paramount buys UFC rights in US$7.7b deal
Make us a preferred source
Make us a preferred source on Google
The news: Paramount has acquired the US rights to TKO Group’s Ultimate Fighting Championship (UFC) for seven years, commencing in 2026, in its first major deal since merging with Hollywood production firm Skydance.
The numbers: Paramount is paying an average of USD1.1 billion ($1.69 billion) per year, totalling USD7.7 billion, for UFC’s offering of 13 marquee events and 30 “Fight Nights,” the companies said.
The context: The events will be distributed through Paramount’s direct-to-consumer streaming platform, Paramount+, with a select number of events to be simulcast on Paramount’s broadcast network CBS.
The companies said that as part of the agreement, UFC and Paramount will move away from UFC’s existing Pay-Per-View model in favour of making premium these events available at no additional cost to the expansive US subscriber base of Paramount+. The strategy shift is aimed at increasing accessibility, driving engagement and subscriber growth.
TKO had been shopping the UFC rights around all year, Bloomberg reports. ESPN had held the UFC rights since 2019, but allowed an exclusive negotiating window of 90 days to lapse at which point Netflix had a brief window to strike a deal. When that lapsed, Paramount, Amazon.com, YouTube, Warner Bros. Discovery Inc. and Fox Corp. all inquired.
The deal comes just days after Paramount completed its USD8 billion merger with Skydance in one of the biggest media deals of the last decade.
What they said: David Ellison, chairman and CEO of Paramount said: “Paramount's advantage lies in the expansive reach of our linear and streaming platforms. Live sports continue to be a cornerstone of our broader strategy — driving engagement, subscriber growth, and long-term loyalty, and the addition of UFC's year-round must-watch events to our platforms is a major win.”
Mark Shapiro, president and COO, TKO, said: "Our new agreement unlocks powerful opportunities at TKO for years to come – meaningful economics for investors; expanded premium inventory for global brand partners; and deeper engagement for UFC's passionate fanbase. Just as importantly, our athletes will love this new stage."
The sources: Paramount Skydance press release, Bloomberg
