Paramount's Strategic Knockout: A $7.7 Billion Gamble on UFC

In a strategic maneuver shortly after merging with Skydance, Paramount has announced a significant $7.7 billion investment for exclusive U.S. broadcast rights to the Ultimate Fighting Championship (UFC) over the next seven years. This move marks the first major action by the newly-formed entity.

"The addition of UFC's year-round must-watch events to our platforms is a major win," stated David Ellison, Paramount CEO and former head of Skydance. Under the new agreement, Paramount+ will host the complete U.S. slate, including 13 numbered UFC events and 30 "Fight Nights" annually, starting next year.

This decisive step aligns Paramount's strategy with competitors like Netflix and Disney, who have made significant strides in securing major sports content. By investing heavily in UFC, Paramount seeks to leverage its diverse, young-skewing audience, further boosting its subscriber base and shaping future media landscapes.

(With inputs from agencies.)