Netflix, WWE ink long-term partnership worth over $5 billion

Investing.com -- Netflix has agreed to a more than $5 billion, 10-year rights deal with WWE to bring the pro wrestling promotion's flagship weekly program to the streaming service, according to a joint statement on Tuesday.

The companies said that Netflix (NASDAQ:NFLX) will become the "exclusive new home" of WWE's "Raw" event in several territories, including the U.S., U.K., and Canada. "Raw," a blend of scripted content and wrestling that launched the careers of stars like John Cena and Dwayne "The Rock" Johnson, first debuted in 1993.

Netflix is also set to exclusively show WWE programming, such as its "WrestleMania" and "Royal Rumble" pay-per-view telecasts, outside the U.S. "as available."

Shares in TKO Group Holdings (NYSE:TKO), the parent of WWE controlled by Ari Emanuel's Endeavor Group, surged by more than 20% in early U.S. trading.

Calling the deal "transformative," TKO President Mark Sharpiro said it will "[lock] in significant and predictable economics for many years."

"Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix,” Shapiro added.

WWE's move away from its current broadcaster, Comcast-owned USA Network, points to the fierce competition streaming platforms present to traditional television operators. "Raw" is currently the top-rated program on USA, bringing in 17.5 million unique viewers annually.

Netflix, meanwhile, has been betting on live sports to help boost subscribers and ward off rivals like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL). It has already secured the rights to broadcast a tennis match between Rafael Nadal and Carlos Alcaraz, and streamed a golf tournament featuring Formula One drivers and professionals.

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