ESPN to acquire NFL Network in landmark agreement

The deal gives the NFL a 10% equity stake in ESPN.

ESPN, a subsidiary of The Walt Disney Company, announced on Tuesday that it will officially acquire the National Football League (NFL) Network in a landmark agreement.

The deal -- which gives the NFL a 10% equity stake in ESPN -- includes the NFL's linear RedZone Channel and NFL Fantasy.

The agreement between the sports media giant and the NFL aims to "set a new standard for how professional football is delivered, experienced and celebrated by fans," the companies said in a press release about the deal.

"Today's announcement paves the way for the world's leading sports media brand and America's most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can," said Robert A. Iger, chief executive officer of The Walt Disney Company.

"Commissioner Goodell and the NFL have built outstanding media assets, and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney's streaming ecosystem," Iger added.

The agreement coincides with ESPN's forthcoming direct-to-consumer service, according to the release, which will now include NFL content. NFL programming will also remain on cable, satellite and leading streaming providers, the companies said.

In total, ESPN's platforms will license an additional three NFL games per season to air on NFL Network as a result of the agreement, according to the companies.

NFL Fantasy Football will also merge with ESPN Fantasy Football, creating the official Fantasy season-long game of the NFL.

"Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love," NFL Commissioner Roger Goodell said in the release. "Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered. The Network's sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways."

The agreements are non-binding and the transactions are subject to the parties' negotiation and various approvals, including by the NFL team owners, according to the release.

"This is an exciting day for sports fans," said Jimmy Pitaro, chairman of ESPN. "By combining these NFL media assets with ESPN's reach and innovation, we're creating a premier destination for football fans."

Editor's note: this story has been updated.

The Walt Disney Company is the parent company of ESPN and ABC News.