Fresh off its merger with Skydance, Paramount (NASDAQ:PSKY) has wasted no time making a bold, high-profile move—securing a seven-year, $7.7 billion deal with TKO Group for the exclusive U.S. media rights to Ultimate Fighting Championship (UFC) events starting in 2026. The agreement gives Paramount+ streaming rights to all 13 of UFC’s marquee events and 30 “Fight Nights” annually, while also allowing select bouts to air on CBS in prime time. This more than doubles UFC’s annual rights fee compared to its prior ESPN deal, marking a decisive pivot away from the pay-per-view model in favor of bundled, high-value streaming access. Let us dive deeper into this deal and the post-acquisition aftermath to analyze what could be the biggest game changers for Paramount Skydance in the coming year.
Boosting Paramount+ Retention & ARPU Through Year-Round Engagement
UFC’s continuous schedule of live events offers Paramount+ a powerful tool to keep subscribers engaged throughout the year, bridging the gaps between new seasons of scripted content. This matters because Paramount’s streaming strategy has emphasized “original hits over volume,” meaning fewer but higher-impact titles. UFC fights—especially the 13 premium events now included in the subscription—give fans a recurring reason to log in, reducing churn and supporting ARPU growth. Paramount+ already saw watch time per subscriber rise 14% year-over-year in H1 2025 and achieved record-low churn, driven by titles like Landman, Yellowjackets, and The Chi. UFC’s addition could sustain that momentum, particularly among younger, sports-oriented demographics that may not overlap with Paramount+’s existing audience base. By removing the pay-per-view cost barrier, Paramount+ increases the perceived value of its subscription, potentially attracting fans who previously only followed marquee UFC fights sporadically. Coupled with its existing sports portfolio—NFL, UEFA, NCAA basketball—UFC strengthens the service’s live-sports offering, enhancing its positioning as a multi-genre platform and giving Paramount more leverage in pricing strategy and bundled offerings.
Monetizing Across CBS & Multi-Platform Advertising
Paramount’s ability to simulcast select UFC events on CBS opens a lucrative cross-platform monetization channel that blends linear’s mass reach with streaming’s targeted advertising capabilities. CBS remains the most-watched U.S. broadcast network, delivering 8 of the top 10 series in the 2024–2025 season, and streaming of CBS series on Paramount+ grew 42% year-over-year. UFC on CBS could act as a powerful acquisition funnel for Paramount+, converting casual viewers into paying subscribers. For advertisers, UFC’s live, unpredictable nature offers brand-safe but high-energy inventory—precisely the kind that commands premium CPMs. In its latest upfront, sports and streaming accounted for almost 30% of Paramount’s total ad volume, with double-digit growth in sports demand. UFC expands this inventory with a demographic profile—particularly the male 18–49 segment—that is highly sought after yet increasingly difficult to reach via traditional TV. Bundling sponsorships across CBS, Paramount+, Pluto TV, and social media channels could further enhance ad yields. The regular cadence of UFC events also allows Paramount to build sustained advertiser relationships throughout the year, contrasting with the seasonality of most sports properties and providing steadier ad revenue visibility.
Positioning For International Rights & Global Growth
Although the deal currently covers U.S. rights, UFC’s global appeal positions Paramount to pursue international expansion when those rights become available. Paramount+ already operates in multiple overseas markets, closing Q2 2025 with 77.7 million subscribers, and has had success leveraging sports content to drive adoption abroad. UFC’s strong international following—from Europe to Latin America to Asia—offers a ready-made acquisition funnel in markets where Paramount+ is still building its presence. Even without immediate international broadcast rights, Paramount could exploit UFC’s global resonance through ancillary programming, fighter profiles, archived fights, and promotional tie-ins in regions where the sport is popular. This aligns with CEO David Ellison’s stated intention to “meaningfully invest in content that can boost platforms” rather than cutting for short-term margin improvement. In markets where Paramount already carries UEFA, local soccer leagues, or cricket, UFC could be integrated into sports bundles to create differentiated, high-value offerings. The challenge will be acquiring rights in a competitive, fragmented global market without inflating costs beyond monetizable potential—a balancing act that will determine whether UFC can become a truly global growth driver for Paramount.
Driving Franchise & Content Synergies Across Paramount’s Ecosystem
Paramount’s experience monetizing franchises like Mission Impossible, Sonic the Hedgehog, Yellowstone, and Teenage Mutant Ninja Turtles offers a template for UFC integration. The sport’s rich personalities, rivalries, and narratives are ripe for development into original content, from behind-the-scenes docuseries to feature films. Paramount Pictures could explore theatrical projects tied to UFC stars, while CBS Sports and Paramount+ expand fight-related coverage with pre- and post-event analysis, historical retrospectives, and crossover promotions. Consumer products—such as apparel, collectibles, and video games—could provide incremental revenue, particularly if tied to marquee fights or champion fighters. Paramount’s track record shows that big content moments drive spikes in library viewing—Mission Impossible: The Final Reckoning boosted franchise library viewership by 60% on Paramount+—suggesting UFC fights could have a similar halo effect on archived bouts. Cross-promotions could also flow the other way, with UFC broadcasts serving as platforms to market Paramount films and series to a large, engaged audience. Careful curation will be key to ensure crossovers resonate with UFC fans while staying authentic to the sport’s image, avoiding brand dilution while maximizing engagement across the ecosystem.
Final Thoughts
We can see Paramount Skydance’s stock taking a beating after a selloff from the below par results. Paramount’s latest LTM valuation multiples—0.84x EV/Revenue, 9.42x EV/EBITDA, and 10.98x EV/EBIT—suggest the market values it modestly on revenues as well as earnings especially when compared with peers like Netflix or Disney. However, both its major rivals are expanding heavily in the live sports domain and Paramount Skydance is making sure that it is not left behind. The UFC rights acquisition, which has grown Paramount+ into a top-four global SVOD service in just four years and maintained CBS’s 17-year streak as the number-one broadcast network, UFC’s year-round, high-engagement content could serve as a key driver of subscriber retention, ad revenue growth, and brand diversification—if integrated effectively across its platforms. However, the $7.7 billion price tag increases execution risk, especially if subscriber growth, ad monetization, or cross-platform synergies fall short of expectations. While the deal has the potential to enhance Paramount’s competitive positioning and support multiple expansion, it also carries the risk of financial strain if monetization lags behind escalating rights costs. Whether this becomes a knockout win or a costly swing will depend on disciplined execution across both streaming and broadcast platforms.