Paramount has signed a $7.7bn (£5.7bn) agreement to become the exclusive United States broadcaster of the Ultimate Fighting Championship (UFC), just days after completing its controversial merger with Skydance Media.
Under the seven year deal with UFC’s parent company, TKO Group, all 13 of the sport’s high-profile numbered events and 30 “Fight Nights” per year will be available to stream on the Paramount+ service from next year, with a selection also simulcast on CBS.
The agreement will mark the end of UFC’s current pay-per-view arrangement on Disney-owned ESPN+ in the US. Paramount will pay an average of $1.1bn annually for the rights and has pledged to offer the matches at no extra cost to subscribers.
David Ellison, who became chair and chief executive following Skydance’s $8.4bn takeover of Paramount last week, described live sport as “a cornerstone” of the company’s strategy. “The addition of UFC’s year-round must-watch events to our platforms is a major win,” he said. Ellison also suggested Paramount may pursue UFC rights in other markets as they become available.
Mark Shapiro, president and chief operating officer of TKO Group, called Paramount “a platinum partner with significant reach” and said the agreement would create “powerful opportunities” for years ahead.
UFC is led by Dana White, a close ally of US president Donald Trump, who appeared at Trump’s victory rally in Washington DC in January. White also serves on the board of Meta, the parent company of Facebook and Instagram.
The landmark sports rights deal comes as Ellison, the 42-year-old son of Oracle co-founder Larry Ellison, and Paramount’s co-owner RedBird Capital pursue a $2bn cost-cutting programme. RedBird, run by Gerry Cardinale, is separately working on a £500m takeover of The Telegraph.
UFC announcement follows protracted Paramount-Skydance merger
The UFC announcement follows the completion of the protracted Paramount-Skydance merger, which faced regulatory and political scrutiny. Only last month, Paramount Global agreed to pay $16m to settle a legal dispute with President Trump over what he claimed was misleading editing of a pre-election CBS News interview with Democratic candidate Kamala Harris.
While CBS had initially dismissed the lawsuit as “completely without merit”, its parent company ultimately decided to settle. Days later, CBS cancelled The Late Show with Stephen Colbert, after the host suggested the settlement amounted to “a bribe”.
Paramount’s portfolio includes MTV, Comedy Central, Nickelodeon, Showtime and the UK’s Channel 5. Its Hollywood studio arm has produced blockbusters such as Top Gun: Maverick, along with the Mission: Impossible and Star Trek franchises.
