Core Insights - Paramount has acquired U.S. rights to TKO Group's UFC for seven years starting in 2026, paying a total of $7.7 billion, averaging $1.1 billion per year [2][3][6] Group 1: Deal Structure and Financials - The deal includes 13 marquee events and 30 "Fight Nights," with streaming available on Paramount+ and select events simulcast on CBS [2] - Payments are structured to be lower in the early years and increase over time [2] - Paramount's previous deal with ESPN averaged $500 million for five years, expiring at the end of 2025 [3] Group 2: Strategic Implications - The elimination of the pay-per-view model is seen as a significant shift, appealing to younger audiences who prefer subscription models [4] - TKO leadership initially planned to sell only "Fight Night" events but negotiated the full package deal rapidly after the merger with Skydance [5] - The acquisition of UFC rights is viewed as a rare opportunity, with limited top-tier sports rights available in the near future [6] Group 3: Market Position and Future Plans - UFC events are attractive for streaming platforms due to their year-round schedule, providing consistent subscription revenue [7] - Paramount is also interested in acquiring international rights to UFC, with a 30-day exclusive negotiation window for each country's rights upon renewal [8]