TKO CEO Ariel Emanuel and COO Mark Shapiro on $1.1B/year Paramount deal

Deal Highlights - Paramount and TKO reached a 7-year agreement worth $11 billion, making Paramount Plus the exclusive US home for UFC starting in 2026 [1] - The annual average value (AAV) of the deal is $11 billion, which is two times the value of the previous deal [4] - The deal came together in 48 hours after multiple players showed interest in different configurations of content, including pay-per-views and fight nights [2] Strategic Rationale - TKO's strategy focuses on maximizing the value of its rights and finding the right platform for future growth [4] - CBS will play a significant role, with Simo casts on many fights and likely all numbered events (formerly pay-per-view) [5] - The broadcast network aims to drive subscriptions to Paramount Plus, leveraging CBS's reach and brand [7] - Integrating sports betting is a key part of enhancing the fan experience for UFC [10] - The goal is to increase Paramount Plus subscribers from 77 million to 300 million and retain them with consistent premium fights [11] Business Model Shift - TKO aims to move away from the old pay-per-view model, which is considered antiquated and a barrier for fans [14][15] - The new model offers UFC content on Paramount Plus with ads for $8, providing a more accessible option for fans [13] - TKO is purpose-built for the streaming market, focusing on big events and international reach [14]