(CTN News) – The Ultimate Fighting Championship (UFC) and Paramount Pictures have concluded a $7.7 billion deal that will go down as one of the most important financial transactions in history.

According to the rules of this agreement, starting in 2026, Paramount will be the only organization permitted to broadcast and stream every UFC event in the US. The contract contains a promise to this effect.

The arrangement, which was announced on August 11th, states that thirty UFC Fight Nights and thirteen other important events annually would be streamed and shown by CBS and Paramount+.

The public was informed about this arrangement.

The contract has a duration of seven years. A portion of this task will be allocated to each of the two businesses. The pay-per-view agreement that now exists between the Ultimate Fighting Championship (UFC) and ESPN+ may potentially be terminated as a result of this specific combination of contractual provisions.

The combined yearly revenue from this cooperation is $550 million. ESPN+ is expected to pay a total of $550 million a year under this deal. According to Sportico’s estimates, the new arrangement is anticipated to generate an annual value that is more than twice as high, or $1.1 billion on average.

Following the merger of Paramount and Skydance Corporation, this move is part of a larger plan being implemented by David Ellison, the company’s newly appointed director of operations. David Ellison is currently putting this idea into practice.

In a statement, Ellison emphasized that live sports are “a cornerstone” of Paramount’s initiatives to encourage subscriber engagement and growth. He made reference to the company’s plans when he said this.

This step was made in order to accomplish the goal of expanding the number of subscribers. He mentioned the actuality of live sports in his comment, which was the topic of his discussion.

Paramount+ had 77.7 million subscribers, trailing Disney+ and Netflix.

CBS would also be in charge of concurrently airing multiple UFC events as they happen, under the rules of the new deal. “A major win” for the combatants and the audience, according to Mark Shapiro, president and chief operating officer of TKO Group, the parent company of the Ultimate Fighting Championship (UFC).

The proprietor of that specific business is the TKO Group. Shapiro also pledged to become more active in the organization’s operations and broaden its sphere of impact.

Furthermore, Paramount has stated unequivocally that they are open to the idea of acquiring UFC rights elsewhere should they become available. This is another appeal that Paramount has made a big deal out of.

It is expected that the United Fighting Championship (UFC) will adopt a new distribution plan in the US after the transaction is finalized. It is highly anticipated that this shift will occur. As a result of this action, which will eliminate pay-per-view, fans will have more access to the specific content they want to see.

This conclusion is consistent with the political circumstances surrounding the merger, including the purported earlier concessions made by Paramount that helped secure regulatory approval.

This background offers an additional issue of interest.

There is a chance that the prestigious White House may host an Ultimate Fighting Championship (UFC) event during the celebrations in July 2026 to mark the 250th anniversary of the United States’ independence. This would successfully close the agreement as a symbolic act that would set the stage for the contract to be fulfilled.

President Donald Trump, who has a close relationship with Ultimate Fighting Championship President Dana White and has engaged in several bouts with Ellison recently, is supposedly organizing the event.

Trump has been accused of being in charge of organizing the gathering. Trump has attended several debates with Ellison over the past few years, which is the reason for this circumstance.

In order to secure the rights to two of the most important events in the professional wrestling industry, Wrestlemania and SummerSlam, Worldwide Wrestling Entertainment (WWE) will refocus its efforts on the company and sign a new five-year contract starting in 2026. These gatherings are regarded as some of the most significant in the sector.

SOURCE: TET