TKO Group Secures $7.7 Billion UFC Streaming Deal with Paramount, Stock Gains

TKO Group Holdings announced a $7.7 billion, seven-year agreement with Paramount that grants the streaming service exclusive rights to broadcast UFC events in the United States starting in 2026. This deal follows a recent WWE agreement with Disney’s ESPN and reflects TKO’s growing influence in live sports broadcasting. Following the announcement, TKO’s stock rose 10% on Monday, extending gains to 26% year-to-date and 50% over the past 12 months.

Jefferies analyst Randal Konik maintained a Buy rating on TKO, citing the Paramount contract as a driver of future revenue growth. The deal includes 13 UFC numbered events and 30 Fight Nights annually, moving away from the traditional pay-per-view model. UFC CEO Dana White highlighted the goal of making the fights more accessible and affordable through the streaming platform.

Industry experts note that shifting from pay-per-view could attract a broader audience, increasing viewership and fan engagement. In addition to domestic rights, TKO retains key international broadcasting agreements and has secured more advertising slots, offering greater flexibility in monetizing its content.

Raymond James analyst Ric Prentiss pointed to this deal as an example of streaming platforms competing aggressively for live sports rights, indicating that premium sports content remains a priority for growth strategies among digital services.

TKO emerged from the 2023 merger between UFC and WWE and has secured other major content deals. Last week, ESPN signed a five-year, $1.6 billion contract with WWE for exclusive rights to flagship events such as WrestleMania, starting in 2026. Earlier this year, Netflix agreed to a 10-year, $5 billion deal to stream WWE’s Monday Night Raw, further expanding WWE’s reach on digital platforms.

Financially, TKO reported second-quarter revenue of $1.3 billion, a 10% increase from the previous year and above analysts’ forecasts of $1.2 billion. Net income rose to $273.1 million, compared to $46.2 million in the same period last year. UFC revenue increased 5.5% to $415 million, while WWE revenue grew 22% to $556 million. However, sales at TKO’s International Management Group division declined by 4% to $306 million.

Reflecting these results, TKO raised its full-year revenue forecast to between $4.63 billion and $4.69 billion, up sharply from $2.8 billion reported for 2024. The company’s forward price-to-earnings ratio stands at 88.5, more than twice its level a year ago, signaling strong investor interest. Of the eight analysts covering TKO, seven maintain Buy ratings, with Benchmark as the only firm recommending Hold.

Sam Stovall, chief investment strategist at CFRA Research, commented on TKO’s valuation, saying the company operates in a sector with growth potential, justifying higher multiples despite the elevated price.

TKO is moving away from the traditional pay-per-view model by putting UFC events exclusively on Paramount+. This shift aims to make the fights more accessible to fans while creating a reliable stream of subscription revenue. At the same time, WWE is expanding its presence by striking deals with ESPN and Netflix, reaching audiences through both cable TV and streaming platforms. These changes reflect TKO’s plan to build long-term relationships with viewers rather than focusing on one-time sales. The effectiveness of this approach will become clearer as subscriber numbers and ad revenue start to show in upcoming financial results.

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