(Reuters) -Skydance-owned Paramount will become the exclusive U.S. home of Ultimate Fighting Championship under a seven-year streaming deal valued at about $7.7 billion, the first major strategic move by the newly merged media giant under new CEO David Ellison.

Starting next year, Paramount+ will carry the complete U.S. slate of 13 numbered UFC events and 30 Fight Nights. UFC, owned by TKO Group Holdings, will also have select numbered cards simulcast on Paramount's CBS broadcast network, the companies announced on Monday.

The deal builds on Ellison's commitment to increase investment in high-quality exclusive content, which he had called the "single biggest driver of subscriber growth".

Sports content, especially rights to live events, has become the cornerstone of media strategy, as cord-cutting accelerates, with rivals such as Netflix and Disney also striking similar deals to strengthen their offerings.

Netflix secured a $5 billion, 10-year global deal for WWE Raw from 2025 and added two NFL Christmas Day games. Disney's ESPN extended rights with NFL, NHL, MLB and College Football Playoff, and plans a joint sports streaming venture with Warner Bros Discovery and Fox.

"The addition of UFC's year-round must-watch events to our platforms is a major win," Ellison said, calling UFC a "global sports powerhouse".

The company will pay an average of $1.1 billion a year and include events at no extra cost to subscribers, shifting away from UFC's traditional pay-per-view model. It also said it may seek UFC rights in other markets as they come up for bidding.

UFC stages about 43 live events a year, reaching roughly 100 million U.S. fans and nearly 950 million households globally. Its slate includes marquee numbered card events like UFC 300, weekly Fight Nights, and reality shows like "The Ultimate Fighter" and "Dana White's Contender Series".

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