ESPN Acquires NFL Network, RedZone Channel, More in Exchange for 10% Equity Stake

ESPN is acquiring NFL Network and other league assets, including RedZone and NFL Fantasy, as part of a non-binding agreement with the NFL, the network announced Tuesday.

The NFL will receive a 10 percent equity stake in ESPN in exchange.

The league is also licensing some NFL content for use by ESPN as part of a second non-binding agreement.

ESPN noted that these agreements "are subject to the parties’ negotiation of definitive agreements, various approvals including by the NFL team owners, and customary closing conditions."

Fan favorite anchor Scott Hanson confirmed on Tuesday he will continue to host NFL RedZone going forward.

NFL Network will be operated by ESPN, while RedZone will be operated by the NFL under the new agreement. ESPN will be in charge of distributing both products.

ESPN announced in May the launch of a new "direct-to-consumer" option that will give fans direct access to the linear networks without cable for the first time. NFL Network will be packaged into this service in addition to regular cable programming.

NFL Fantasy Football and ESPN Fantasy Football will meanwhile merge under the new agreement.

The agreement will also result in a shift in ESPN's NFL broadcasting schedule, with the network shifting four games to the NFL Network as part of the agreement.

The NFL will retain ownership and operation of other properties including NFL Films, NFL+, NFL.com and the NFL Podcast Network, as well as official sites for all 32 teams.

ESPN's ownership is currently split between ABC, Inc, a Walt Disney indirect subsidiary that owns 80 percent of the network, and Hearst, which holds a 20 percent stake. It is not yet clear how the pending agreement will dilute those ownership shares.

The agreement will not impact the NFL's media rights deals, which the league has the ability to opt out from after the 2029 season, The Athletic's Andrew Marchand reported.