TKO Group Holdings (TKO) is going for the belt with a $7.7 billion media rights deal with Paramount (PARA) to stream UFC events, combined with a recent WWE agreement with Disney’s (DIS) ESPN.
The company’s stock surged 10% on Monday following the announcement. Its stock is up 26% in 2025 and 50% in the past year. Jefferies analyst Randal Konik reinforced the firm’s Buy rating after the news, with a price target of $220.
“We expect the UFC deal to deliver higher-than-expected financial gains and a new partnership to propel the brand forward,” Konik said.
According to Jefferies, TKO’s agreement with Paramount solidifies the company’s position as a dominant force in sports media. The seven-year deal gives Paramount+ exclusive US streaming rights for UFC events starting in 2026, including 13 numbered events and 30 Fight Nights annually.
Notably, the deal is a shift away from the traditional pay-per-view (PPV) model. TKO CEO Dana White has said the agreement aims to make it “more affordable and accessible to view the greatest fights on a massive platform.”
Konik wrote that removing the PPV barriers could drive higher fan engagement and broader reach. Additionally, TKO retains key international media rights and gained two minutes of additional ad inventory per hour, giving it flexibility to monetize content further.
Raymond James analyst Ric Prentiss wrote in a note that the announcement signals Paramount’s management may be adopting a more aggressive, growth-focused strategy toward sports rights and content spending. The deal with TKO underscores broader competition among streaming platforms to secure premium live sports content.
TKO, the result of a 2023 merger between UFC and WWE, has also won big deals for the wrestling league.
Last week, ESPN reached a $1.6 billion agreement with TKO’s WWE for exclusive rights to high-profile events like WrestleMania. The five-year deal officially starts in 2026. Earlier this year, Netflix (NFLX) began airing WWE’s Monday Night Raw as part of a 10-year, $5 billion contract.
In the second quarter, TKO’s total revenue rose 10% year over year to $1.3 billion, surpassing estimates of $1.2 billion. Net income climbed to $273.1 million, compared to $46.2 million in the prior year period.
UFC revenue jumped 5.5% year over year to $415 million, while WWE revenue increased 22% to $556 million. Sales for TKO’s third brand, International Management Group, declined 4% to $306 million.
The company raised its full-year revenue guidance to a range of $4.63 billion to $4.69 billion, compared to $2.8 billion in 2024.
