Paramount Stock Price Today Surges on $7.7 Billion UFC Rights Deal After Skydance Merger

Investors in Paramount are cheering as the newly merged Paramount Skydance saw its stock price climb sharply in early trading Monday following a landmark sports media deal. The entertainment giant, which now trades under the ticker PSKY, announced a seven-year, $7.7 billion agreement with TKO Group Holdings to secure exclusive U.S. media rights to all Ultimate Fighting Championship (UFC) events starting in 2026.

The contract, worth an average of $1.1 billion annually and backloaded toward the later years, marks a significant shift in UFC’s distribution model, moving away from a pay-per-view focus and bringing its premium fights to Paramount+ and CBS audiences. Paramount also hinted at ambitions to secure UFC rights outside the United States.

As of pre-market trading, Paramount stock rose 3.2% to $10.85, while TKO Group gained 1.4%. This comes just days after Paramount and Skydance officially closed their high-profile merger last Thursday.

Why Paramount Stock Price Today Is in the Spotlight

The surge in Paramount stock price today is fueled by the belief that live sports remain one of the strongest draws for streaming and broadcast platforms. Paramount CEO David Ellison called the UFC agreement a “major win” that will deliver “year-round must-watch events” to millions of fans and strengthen the company’s competitive edge in the streaming wars.

This deal gives Paramount+ a compelling reason for subscribers to stay engaged, and CBS’s simulcast coverage will expand UFC’s mainstream visibility. The move aligns with the company’s broader push into live sports, a proven strategy for audience retention and advertising growth.

Impact of the Skydance Merger on Paramount’s Strategy

The newly formed Paramount, a Skydance Corporation, enters the market with ambitious goals. Ellison has signaled a dual focus on scaling the streaming platform and integrating artificial intelligence into studio operations. While no updated financial forecasts have been released, industry analysts expect more details during the company’s third-quarter earnings call in the coming months.

Analyst David Joyce of Seaport Research Partners upgraded Paramount to Neutral from Sell over the weekend, noting that Skydance’s technology industry connections could unlock fresh growth opportunities. He also suggested further mergers and acquisitions may be on the horizon, potentially strengthening Paramount’s position in both entertainment and tech-driven media sectors.

Why It Matters for Investors

Over the past decade, Paramount’s market performance has been under pressure due to cord-cutting trends and weaker advertising revenue, leading to a 75% drop in its stock value. However, the combination of deep-pocketed financial backing from the Ellison family—Larry Ellison’s net worth is estimated at $300 billion—and strategic sports media acquisitions could help reverse that trajectory.

For investors, the UFC deal signals a renewed willingness to invest heavily in premium content, potentially driving both subscription growth and advertising revenue. If executed well, this strategy could transform Paramount into a more resilient and competitive player in the streaming era.

What’s Next for Paramount Stock

Market watchers will be closely tracking Paramount’s execution of its sports-centric content strategy, upcoming quarterly earnings, and any additional acquisition moves. The integration of Skydance’s resources and vision could accelerate platform innovation and help Paramount recapture market share from streaming rivals.

While short-term volatility remains possible, many analysts believe that PSKY now represents a more promising long-term growth opportunity—particularly if the UFC deal succeeds in boosting brand loyalty and audience engagement.

In short, Paramount stock price today is rising on the back of a bold sports media play, signaling a new era for the freshly merged entertainment giant.

You Must Know:

Q1: Why is Paramount stock price rising today?
Paramount’s stock is up following the announcement of a $7.7 billion, seven-year exclusive U.S. media rights deal with UFC, starting in 2026.

Q2: How will the UFC deal affect Paramount+?
Paramount+ will stream all UFC numbered events and Fight Nights, with some simulcasts on CBS, making live sports a key retention driver.

Q3: What does the Skydance merger mean for investors?
The merger brings fresh capital, technology ties, and potential for more acquisitions, strengthening Paramount’s long-term growth outlook.

Q4: Is Paramount planning more acquisitions?
Analysts believe additional mergers and tech-focused acquisitions could follow, aiming to accelerate platform growth.

Q5: How has Paramount stock performed historically?
Over the last decade, Paramount’s stock fell 75% due to cord-cutting and weak ad revenue, but recent moves suggest a potential turnaround.