Major media conglomerate Paramount secures UFC rights in a staggering $7.7 billion acquisition deal
In a groundbreaking move, Paramount has acquired the U.S. rights to TKO Group's UFC for an impressive seven-year period, starting from 2026. This deal, worth an average of $1.1 billion per year, nearly doubles the previous annual value that Disney's ESPN paid for UFC rights[1][2][3].
With this acquisition, Paramount will take over the exclusive rights to stream all UFC events on their streaming platform, Paramount+. Some marquee events will also be simulcast on CBS, making premium UFC content more accessible to a wider audience[1][2][3]. This shift away from the traditional pay-per-view (PPV) model eliminates extra charges beyond the subscription, making UFC events more affordable for fans[1][2][3].
The deal also grants Paramount the rights to develop original UFC-related content and potentially pursue international UFC rights in the future[1][2][3][5]. In contrast, Disney's previous UFC deal with ESPN, which was valued at about $550 million annually and maintained a PPV model through ESPN+, did not provide similar rights[1][2][3].
ESPN, however, has secured WWE rights from TKO, indicating a shift of UFC away from ESPN's portfolio to Paramount’s growing streaming and broadcast sports presence[4].
Key differences between the Paramount and Disney/ESPN deals are outlined below:
| Aspect | Paramount Deal (2025) | Disney/ESPN Deal (Prior to 2026) | |----------------------------|---------------------------------------------|--------------------------------------| | Duration | 7 years | Prior multi-year agreement | | Total Value | $7.7 billion total (~$1.1 billion/year) | Approximately $550 million/year | | Distribution | Streaming (Paramount+) + CBS simulcast | ESPN+ streaming with PPV model | | Pay-per-View Model | Eliminated, premium events included in sub | Reliant on PPV for marquee events | | Original Content Rights | Paramount has option to create UFC content | ESPN did not have similar rights | | Strategic Impact | Moves UFC to more accessible platform, expands non-PPV viewership | PPV barriers remained potentially limiting viewership |
This deal represents a significant investment in streaming sports rights, doubling UFC’s U.S. media revenue and making UFC content broadly available on a bundled streaming service, contrasting with Disney/ESPN’s more traditional and lower-valued rights approach that retained the PPV revenue stream[1][2][3][4][5].
It's worth noting that UFC matches are currently available in more than 210 countries, and all matches and events will be streamed in the U.S. via Paramount+, with select events simulcast on CBS[1][2][3]. Major League Baseball will not reorganise its major media packages until 2028[6].
UFC events take place year-round, providing continuous live programming for 43 events annually[7]. The deal payments are weighted, with less money paid in the early years and higher values later[7]. UFC is described as a "unicorn asset" that comes up about once a decade[8].
References:
- Variety
- CBS Sports
- SportsPro
- Deadline
- Bloomberg
- MLB
- Forbes
- Axios
In light of the acquisition, Paramount's portfolio now includes UFC rights, potentially generating an estimated $7.7 billion over seven years, significantly boosting the economy of streaming sports revenue. The UFC content, previously accessed through pay-per-view (PPV), will now be made more affordable for fans, as premium events are integrated into Paramount+ subscriptions, eliminating extra costs beyond the subscription.
