Paramount, the media company, has reached an agreement to sell a majority stake in Bellator, its mixed martial arts promotion, to the Professional Fighters League (PFL). The PFL, an emerging MMA promotion created to rival the dominant UFC, will acquire the stake in a deal whose terms remain undisclosed.

Previous reports estimated the value of Bellator at approximately $500 million. Despite the sale, Paramount will retain a minority stake in the combined company, ensuring its continued involvement in the MMA industry.

Donn Davis, the founder of PFL, announced the acquisition on Monday morning. He expressed excitement for the future, stating that with the addition of Bellator's fighter roster, PFL now has a comparable lineup to that of the UFC. Davis also revealed plans to relaunch the Bellator brand next year, offering fans new and enhanced experiences.

PFL has received a significant investment from Saudi Arabia's Public Investment Fund earlier this year, strengthening its financial position. Notably, the promotion also welcomes celebrity minority owners including Kevin Hart, Mark Burnett, and Wiz Khalifa.

Paramount's predecessor, Viacom, initially acquired a controlling stake in Bellator for $50 million in 2011, playing a crucial role in launching the UFC through its reality series, "The Ultimate Fighter." However, after the Bellator deal, the UFC relocated to Fox Sports and subsequently signed an agreement with ESPN. Today, it is owned by TKO Group Holdings, which is controlled by Endeavor.

Following its strategy to focus on other areas of the business, Paramount has been seeking to exit the combat sport industry. Last month, the company announced the shutdown of Showtime Sports and the consolidation of all sports programming within CBS Sports. As a result, Paramount declared that it would no longer televise live boxing matches.

The sale of Bellator represents a significant step for Paramount as it streamlines its operations and allows PFL to expand its presence in the competitive MMA landscape. With this acquisition, PFL aims to cement its position as a worthy competitor to the UFC and reshape the future of mixed martial arts.

As the deal between Paramount and PFL moves forward, fans and industry observers eagerly anticipate the relaunch of Bellator and the potential impact that this partnership will have in the world of MMA.