In a major early move under new ownership, Paramount has agreed to pay $7.7 billion for media rights to UFC’s mixed martial arts events in the U.S.
Paramount said Monday that it has signed a seven-year deal with TKO Group Holdings that will put 13 marquee UFC events and 30 fight nights on streaming platform Paramount+ beginning next year. Some of the matches will air on broadcast TV network CBS.
Paramount will pay an average of $1.1 billion a year — more than double the amount under TKO’s current pact with ESPN, which expires at the end of 2025.
The deal underscores Paramount Chairman David Ellison’s intent to aggressively pursue properties that will make the company’s streaming platform more attractive to consumers as it battles with Netflix, Amazon and other competitors. Last month, Paramount executives — with the blessing of Ellison and his management team — agreed to pay “South Park” creators Trey Parker and Matt Stone $1.25 billion over five years to lock up exclusive streaming rights to the foul-mouthed Comedy Central cartoon.
Paramount wants more popular, exclusive content to expand the base for Paramount+ and keep consumers paying for the service. The UFC fits the bill, in large part because it is popular with younger men — an elusive demographic for traditional television programmers.
Fans will notice a significant shift when the new deal kicks in.
TKO has agreed to move away from the UFC’s existing pay-per-view model, which means the fights will be widely available to streaming subscribers and in some cases, CBS’ broad audience. All fights will be available with a Paramount+ subscription.
Sports rights have become increasingly important to media companies as they search for ways to draw big audiences that watch television in real time. Mixed martial arts fights will provide Paramount with 43 events — more than 350 hours of boisterous programming a year.
TKO says the UFC draws nearly 100 million fans in the U.S. That includes President Trump.
“Live sports continue to be a cornerstone of our broader strategy — driving engagement, subscriber growth, and long-term loyalty,” Ellison said in a statement. “The addition of UFC’s year-round must-watch events to our platforms is a major win.”
The deal’s value exceeds Wall Street’s earlier estimates. In a note to investors, TD Cowen analyst Lance Vitanza wrote that analysts had previously estimated the value of the UFC rights at $875 million to $925 million a year.
“The deal underscores the unique value proposition of TKO’s primary content packages, UFC and WWE, both of which we believe offer rare opportunities to capture mass audiences focused on a youthful, male demographic,” Vitanza wrote.
TKO shares soared 10% on the news to $180 a share on Monday. in mid-day trading.
Paramount shares slipped 3.7% to $10.12.
Ellison, the son of tech billionaire Larry Ellison, became chairman and chief executive of Paramount last week after his production company Skydance Media completed its $8-billion takeover of the media company.
David Ellison attended at least two UFC fights this year, speaking briefly with Trump at both events. The last meeting, which occurred in New Jersey in early June, came as Paramount was struggling to reach a truce with Trump in his lawsuit over edits to a “60 Minutes” interview with then-Vice President Kamala Harris. At the time, Ellison was awaiting regulatory approval of the Paramount-Skydance merger.
Paramount’s new sports arrangements strengthens ties between Ellison and Ari Emanuel, the longtime agent who serves as executive chairman of TKO Group Holdings, which owns the UFC.
This spring, Ellison turned to Emanuel for help facilitating his and Paramount’s dealings, including with Trump, sources have told The Times.
Emanuel is close to Ellison and was once Trump’s agent. After Emanuel became involved, Paramount reached its $16 million settlement to end Trump’s lawsuit against CBS and Paramount over last October’s “60 Minutes” Harris interview. Trump had complained that “60 Minutes” edited the interview to make Harris more appealing to voters.
The Trump settlement was widely seen as a concession to allow Skydance and Paramount to get the merger over the finish line. Three weeks after the settlement, the Federal Communications Commission approved the Skydance takeover.
“I couldn’t be more excited to join forces with Dana, Ari, and Mark,” Ellison said in Monday’s statement, a nod to the TKO leadership team, which includes UFC Chief Executive Dana White, Emanuel and Mark Shapiro, TKO’s chief operating officer.
“This is a milestone moment and trademark deal for UFC, solidifying its position as a preeminent sports asset,” Emanuel said in the statement. “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 Walt Disney Co.’s ESPN will remain in business with TKO, having recently signed a new five-year $1.6-billion deal to carry its WWE events. ESPN will offer WWE events such as WrestleMania and SummerSlam to subscribers of its direct-to-consumer platform, which launches later this month.
