Latest news with #TKO Group Holdings
Yahoo
6 hours ago
- Business
- Yahoo
TKO delivers a 'knockout' with UFC and WWE deals as Wall Street sees more upside ahead
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. TKO's forward price-to-earnings ratio currently stands at 88.5, more than double compared to a year ago, reflecting strong investor optimism. Of the eight analysts covering the stock, most hold a Buy rating, with Benchmark being the sole firm maintaining a Hold. CFRA Research chief investment strategist Sam Stovall said on Opening Bid that its valuation may still be reasonable. "This is a category that has some opportunities going forward," Stovall said. Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
a day ago
- Business
- Reuters
Paramount wins exclusive US rights for UFC in $7.7 billion deal
Aug 11 (Reuters) - Paramount, days after finalizing its merger with production studio Skydance, said Monday it will pay $7.7 billion for exclusive U.S. broadcast rights to the Ultimate Fighting Championship for seven years — the first major strategic move by the combined company. "The addition of UFC's year-round must-watch events to our platforms is a major win," said Paramount CEO David Ellison, former CEO of Skydance, calling the mixed martial arts franchise a "global sports powerhouse". Under the agreement with UFC owner TKO Group Holdings (TKO.N), opens new tab, streaming service Paramount+ will from next year carry the complete U.S. slate of 13 numbered UFC events and 30 "Fight Nights." Paramount+ and Paramount's CBS broadcast network will also simulcast select numbered cards, the companies said. Numbered cards have historically been pay-per-view events featuring top-ranked fighters and championship bouts but now will come at no extra cost to viewers. Ellison, who oversaw Skydance's run of Hollywood action blockbusters and TV series, committed to increasing Paramount's investment in high-quality exclusive content, which he has called the "single biggest driver of subscriber growth". As cord-cutting accelerates, live sports have emerged as one of the few formats still drawing mass audiences in real time. Rivals Netflix (NFLX.O), opens new tab and Disney (DIS.N), opens new tab preceded Paramount in locking down major sports deals. Netflix secured a $5 billion, 10-year global deal for WWE Raw wrestling and added two Christmas Day NFL football games. Disney's ESPN extended rights with U.S. professional football, hockey and baseball leagues and the College Football Playoff invitational tournament. TKO Chief Financial Officer Andrew Schleimer said conversations had been taking place with Paramount since June, though the process dramatically accelerated last week after Paramount completed its drawn-out $8.4 billion merger with Skydance. "Once the merger closed, we were off to the races," said Schleimer. Paramount will pay an average of $1.1 billion a year to TKO Group and shift away from UFC's traditional pay-per-view model. It may seek UFC rights in other markets as they come up for bidding. "They are not playing for near-term earnings outperformance, they are trying to create a long-term imprint on the future of the media industry to 'win,'" LightShed Partners analysts said. UFC stages about 43 live events a year, reaching roughly 100 million U.S. fans and nearly 950 million households globally. The appealing demographics of UFC's audience, which is diverse but skews toward young men, made bidding competitive, said UFC Chief Operating Officer Lawrence Epstein. Epstein said UFC chose Paramount for its financial strength, CBS' broad television reach and Ellison's focus on technology and long time horizon.
CNA
a day ago
- Business
- CNA
Paramount wins exclusive US rights for UFC in $7.7 billion deal
Paramount, days after finalizing its merger with production studio Skydance, said Monday it will pay $7.7 billion for exclusive U.S. broadcast rights to the Ultimate Fighting Championship for seven years — the first major strategic move by the combined company. "The addition of UFC's year-round must-watch events to our platforms is a major win," said Paramount CEO David Ellison, former CEO of Skydance, calling the mixed martial arts franchise a "global sports powerhouse". Under the agreement with UFC owner TKO Group Holdings, streaming service Paramount+ will from next year carry the complete U.S. slate of 13 numbered UFC events and 30 "Fight Nights." Paramount+ and Paramount's CBS broadcast network will also simulcast select numbered cards, the companies said. Numbered cards have historically been pay-per-view events featuring top-ranked fighters and championship bouts but now will come at no extra cost to viewers. Ellison, who oversaw Skydance's run of Hollywood action blockbusters and TV series, committed to increasing Paramount's investment in high-quality exclusive content, which he has called the "single biggest driver of subscriber growth". As cord-cutting accelerates, live sports have emerged as one of the few formats still drawing mass audiences in real time. Rivals Netflix and Disney preceded Paramount in locking down major sports deals. Netflix secured a $5 billion, 10-year global deal for WWE Raw wrestling and added two Christmas Day NFL football games. Disney's ESPN extended rights with U.S. professional football, hockey and baseball leagues and the College Football Playoff invitational tournament. TKO Chief Financial Officer Andrew Schleimer said conversations had been taking place with Paramount since June, though the process dramatically accelerated last week after Paramount completed its drawn-out $8.4 billion merger with Skydance. "Once the merger closed, we were off to the races," said Schleimer. Paramount will pay an average of $1.1 billion a year to TKO Group and shift away from UFC's traditional pay-per-view model. It may seek UFC rights in other markets as they come up for bidding. "They are not playing for near-term earnings outperformance, they are trying to create a long-term imprint on the future of the media industry to 'win,'" LightShed Partners analysts said. UFC stages about 43 live events a year, reaching roughly 100 million U.S. fans and nearly 950 million households globally. The appealing demographics of UFC's audience, which is diverse but skews toward young men, made bidding competitive, said UFC Chief Operating Officer Lawrence Epstein.
