(Reuters) -Skydance-owned Paramount will become the exclusive U.S. home of Ultimate Fighting Championship under a seven-year rights deal with TKO Group Holdings, starting in 2026, that is valued at around $7.7 billion, the companies said on Monday.

Paramount shares were up 4.2% in premarket trading.

The company will carry the UFC's full U.S. slate of 13 numbered events and 30 Fight Nights on its Paramount+ streaming service, with select numbered events simulcast on its CBS broadcast network. The media company also said it may pursue UFC rights in other markets as they become available.

"Live sports continue to be a cornerstone of our broader strategy," said David Ellison, chairman and CEO of Paramount, calling UFC a "global sports powerhouse".

Sports content, including rights to live events, has become the anchor of media strategy as cord-cutting accelerates. Rivals including Netflix and Disney have also struck similar deals to beef up their content with offerings from the likes of WWE.

Paramount is paying an average of $1.1 billion annually to TKO Group for the rights. It will offer all the matches at no additional cost to consumers, in a shift from the sport's pay-per-view model.

Paramount Global and Skydance Media completed their $8.4 billion merger last week, capping a drawn-out deal process marked by political scrutiny and shareholder concerns.

UFC stages about 43 live events a year and says it reaches roughly 100 million fans in the U.S. and nearly 950 million broadcast and digital households worldwide.