Paramount Skydance (PSKY) Stock: Major UFC Streaming Deal Worth $7.7 Billion Announced

TLDR

Table of Contents

Paramount Skydance (PSKY) secured a $7.7 billion, seven-year deal with TKO Group for exclusive U.S. UFC streaming rights starting in 2026
The deal averages $1.1 billion annually, replacing Disney’s ESPN contract worth roughly $550 million per year
PSKY stock fell 3.7% despite the major deal announcement, while TKO Group surged over 10%
All UFC events will stream on Paramount+ with select fights simulcast on CBS, moving away from traditional pay-per-view model
Analysts maintain a Hold rating on PSKY with average price target of $11.57, implying 14.3% upside potential

Paramount Skydance Corporation closed one of the biggest media deals of the year with TKO Group Holdings. The newly merged entertainment company secured exclusive U.S. streaming rights to all Ultimate Fighting Championship events for seven years starting in 2026.

PPVs are over.
UFC announces new deal with Paramount.
7.7 billion dollars for 7 years.
All numbered events will be on CBS. For free.
Wow! pic.twitter.com/mIUmzqfu4Y
— Spinnin Backfist (@SpinninBackfist) August 11, 2025

The massive $7.7 billion agreement averages $1.1 billion annually for UFC content. This represents a substantial increase from Disney’s ESPN deal, which was valued at roughly $550 million per year and expires at the end of 2025.

Under the new arrangement, Paramount+ will stream all 13 major UFC events and 30 Fight Night matches in the United States. Select numbered events will also simulcast on CBS, giving broader visibility to UFC programming and providing compelling content for Paramount+ subscribers.

The deal marks a major shift away from UFC’s traditional pay-per-view model. TKO Group had grown unhappy with the existing distribution strategy and sought a partner willing to feature their premium content without additional charges to viewers.

PSKY stock dropped 3.7% to $9.96 on Monday despite the announcement. The shares had initially jumped in premarket trading before reversing course during regular hours. TKO Group stock surged over 10%, making it the top performer in the S&P 500.

CEO David Ellison emphasized the strategic importance of live sports content. He called the UFC addition a “major win” and described mixed martial arts as a “global sports powerhouse” that will drive engagement and subscription growth.

Strategic Vision Takes Shape

The UFC deal comes just days after Paramount and Skydance completed their merger on Thursday. Ellison has taken control of the combined company and outlined plans to integrate artificial intelligence into studio operations while scaling up streaming platforms.

TKO President Mark Shapiro praised the partnership, noting his excitement to work with a company that puts UFC “front and center” without charging extra for premium content. This approach differs from traditional cable and pay-per-view models that have faced declining subscriber numbers.

Legacy television networks continue struggling with cord-cutting and reduced advertising revenues. Live sports programming remains one of the few categories that consistently draws large real-time audiences, making the UFC acquisition particularly valuable.

Financial Outlook and Analysis

Seaport Research Partners upgraded PSKY to Neutral from Sell on Sunday. Analyst David Joyce cited the early potential of the Skydance merger and the technology connections that could benefit the combined company.

Joyce noted that detailed financial forecasts will likely come when Paramount Skydance reports third-quarter earnings in the coming months. The analyst described the situation as “Episode 1 has just started” for the newly formed media conglomerate.

The Ellison family’s financial backing provides substantial resources for future growth. David Ellison’s father Larry, Oracle’s chairman, ranks as the world’s second-richest person with an estimated net worth of $300 billion.

Paramount has also indicated interest in pursuing UFC’s international streaming rights when they become available. This could further expand the value of the relationship beyond the current U.S.-focused agreement.

Analysts currently maintain a Hold consensus rating on PSKY stock based on two Buy, nine Hold, and six Sell recommendations. The average price target of $11.57 suggests 14.3% upside potential from current trading levels. Year-to-date, PSKY shares have declined 2.4%.

The deal’s payments are structured to be weighted toward the back end of the seven-year term, which could impact near-term cash flow dynamics for the media company.

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