Paramount Skydance Corp will pay US$7.7 billion (A$11.8 billion) for exclusive United States broadcast rights to the Ultimate Fighting Championship (UFC) for seven years and is on a global hunt for more rights to the mixed martial arts sport.
The global media and entertainment company made the announcement with UFC parent company TKO Group Holdings only days after Paramount Global finalised its $8.4 billion merger with production studio Skydance.
Paramount Skydance said it would exclusively distribute UFC's 13 marquee numbered events and 30 Fight Nights via its direct-to-consumer streaming platform Paramount+ from 2026, with some events to be simulcast on its broadcast CBS network.
The company said it would move away from UFC's pay-per-view model and instead make these events available at no additional cost to Paramount+ subscribers.
“This shift in distribution strategy will unlock greater accessibility and discoverability for sports fans and provide an important catalyst for driving engagement and further subscriber growth for Paramount+,” Paramount said in a news release.
“Paramount intends to explore UFC rights outside the U.S. as they become available in the future.”
Chairman and CEO David Ellison said live sports continued to be a cornerstone of Paramount’s broader strategy to drive engagement, subscriber growth and long-term loyalty.
“Rarely do opportunities arise to partner on an exclusive basis with a global sports powerhouse like UFC – an organisation with extraordinary global recognition, scale, and cultural impact," he said.
Paramount is paying an average of $1.1 billion per year for the U.S. UFC rights, more than double the average of $500 million per year that Walt Disney Company (NYSE: DIS) business ESPN had been paying under a five year deal that expires at the end of 2025.
The deal continues the trend of major entertainment companies signing large live sports rights contracts following similar moves by Netflix (NASDAQ: NFLX) and Walt Disney in American football, soccer, baseball and wrestling.
Shares in Paramount Skydance (NASDAQ: PSKY), formerly known as Paramount Global, closed 39 cents (3.71%) lower at $10.12 on Monday (Tuesday AEST), which capitalises the company at $6.411 billion.
Paramount Skydance owns entertainment brands including Paramount Pictures, CBS, MTV, Comedy Central, Nickelodeon and Paramount+.
