Paramount Skydance Shares Soar 30% After UFC Broadcast Rights Deal
Paramount Skydance Corp. shares surged by as much as 30% on Wednesday, following an 8% gain on Tuesday. This rally made the company the top performer in the S&P 500.
The jump comes after Paramount Skydance announced it had secured exclusive rights to broadcast all Ultimate Fighting Championship (UFC) events in the United States. The deal, valued at $7.7 billion, will run for seven years and was revealed on Monday.
Paramount Skydance is a newly merged company, formed from the combination of Paramount Global and Skydance Media. The Federal Communications Commission (FCC) approved the merger on July 25, and the combined entity began trading on August 8.
Media analyst Kutgun Maral from Evercore ISI said in an August 12 research note that the UFC deal sends a “loud message” to Hollywood, sports leagues, and Wall Street. He added that the merged company is ready to invest in growth, strengthen its creative content, and expand Paramount+ worldwide.
