Paramount-Skydance Stocks: How It's Performing, And How Its Latest UFC Deal Will Unlock New Value

Paramount Skydance Corporation— the $8 billion (£5.89 billion) powerhouse formed from the merger of Paramount Global and Skydance Media— has seen its shares rocket after securing an exclusive $7.7 billion (£5.67 billion) seven-year UFC streaming rights deal.

The rally, which sent shares up between 30% and 46% on 13 August, marks the best multi-day stretch since the merger's completion.

Analysts say the UFC agreement, combined with the new entity's global reach and technology-driven ambitions, could transform its streaming and advertising business.

The newly formed entity combines Paramount's extensive creative library and global distribution network with Skydance's production expertise and industry-leading technological capabilities.

Analysts Back Sports-Streaming Pivot

Investment bank Guggenheim has issued a 'Buy' rating with a $13 (£9.58) price target, citing the UFC deal as a catalyst for growth.

Analyst Michael Morris highlighted that the media rights — worth around $1.1 billion (£810 million) per year — could generate $300 million (£221.05 million) annually in advertising revenue. He said that the company's strategic emphasis is on sports and streaming content.

Unlike ESPN+, where UFC events are pay-per-view, Paramount+ will stream all fights at no extra cost to subscribers, vastly increasing reach and ad inventory. Morris said the merger gives the company 'a refreshed identity with more competitive positioning in premium sports and entertainment content.'

More on the 'Buy' Rating

Notably, the newly announced US media rights deal with TKO Group Holdings, which holds UFC events—worth approximately $1.1 billion (~£810 million) per year—could generate around $300 million (£221.05 million) in annual ad revenue.

Moreover, he reportedly highlighted that the UFC content would reach a much larger domestic streaming audience than ESPN+, allowing for 'significant ad monetisation without the limitations of a pay-per-view model.'

Morris also described the merger as giving the company 'a refreshed identity with a more competitive positioning in premium sports and entertainment content.'

What's In the Deal With UFC?

Beginning in 2026, Paramount+ will stream all 13 marquee "numbered" events and 30 Fight Nights annually—at no extra cost to subscribers—with select flagship bouts also simulcast on CBS. This 7-year deal marks a decisive shift away from traditional pay-per-view, delivering broader access while reinforcing live sports as a growth driver for streaming.

Bringing Legacy to the Future of Entertainment

'Today marks an exciting and pivotal moment as we prepare to bring Paramount's legacy... into the future of entertainment', said David Ellison, chairman and CEO, following the completion of the merger. He pledged to 'stay grounded in creative excellence' while embracing innovation to deliver premium content across entertainment, news, and sports.

Meanwhile, Gerry Cardinale, RedBird Capital's founder, called the deal 'a transformative opportunity to embrace Paramount's 113-year-old legacy... and help transition it for today's evolving technological landscape.' The combined entity aims to boost shareholder value and solidify its position in a rapidly changing industry.

'Day One of a New Paramount'

In his first letter as chairman and CEO, David Ellison called the Skydance–Paramount merger 'Day One of a new Paramount,' uniting 'more than a century of iconic storytelling with the ingenuity... of a 15-year-old studio born in the digital era.'

Ellison pledged to 'transform Paramount into a tech-forward company that blends the creative heart of Hollywood with the innovative spirit of Silicon Valley,' focusing on growth businesses, global streaming expansion, and efficiency gains exceeding $2 billion (£1.47 billion).

Plans include reorganising into three units—Studios, Direct-to-Consumer, and TV Media—while 'supercharging' content output. 'Technology is... a powerful multiplier,' he wrote, promising innovation without sacrificing creativity, and reaffirming a commitment to audiences, creative partners, and shareholders.

Whether through bold investments in premium content, reimagined streaming strategies, or leaner, more responsive operations, Paramount Skydance is signalling that it intends not merely to compete in the next era of media, but to help define it—on screens, in boardrooms, and across the globe.

Outlook: Growth on the Horizon

With a major sports property now in its portfolio, Paramount Skydance is betting big on live events as a driver of subscriber loyalty and advertising revenue. Analysts say the stock's recent surge reflects investor confidence that this merger — and the UFC deal in particular — could unlock significant long-term value.

Whether the momentum holds will depend on how effectively the company delivers on its promise to innovate while protecting its century-old brand. But for now, Wall Street appears to believe that the fight is on — and Paramount Skydance is ready to win it.