In a major early move under new ownership, Paramount acquired the media rights to UFC’s mixed martial arts events in the U.S, the company said Monday.
Paramount signed a seven-year deal with TKO Group Holdings that will put 13 marquee events and 30 fight nights on streaming platform Paramount+. Some of the matches will air on broadcast TV network CBS.
Paramount is paying an average of $1.1 billion a year, totaling $7.7 billion, more than double the amount under TKO’s current pact with ESPN, which expires at the end of 2025.
The deal is a signal that Paramount intends to be aggressive in its pursuit of properties that will make its streaming platform attractive to consumers as it battles with Netflix, Amazon and other competitors.
David Ellison, who became Chief Executive of Paramount last week after his company Skydance completed a $8 billion merger with the media company, has been seen at recent UFC fights speaking with President Trump. Ellison had been awaiting regulatory approval of the Paramount-Skydance merger.
The major promotions presented throughout the year by TKO and WWE are seen as powerful tools to keep streaming subscribers signed up.
Under the new pact, UFC will no longer use pay-per-view to distribute its offerings, in a significant shift. All fights will be available with a Paramount + subscription. TKO produces 43 live events a year, providing 350 hours of live programming.
“This is a milestone moment and trademark deal for UFC, solidifying its position as a preeminent sports asset,” said Ari Emanuel, executive chair of TKO.
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 is will offer WWE events such as WrestleMania and SummerSlam to subscribers of its direct-to-consumer platform which launches later this month.
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