Disney (DIS) said late Tuesday that ESPN has reached a preliminary agreement with the NFL to acquire media assets including NFL Network, NFL RedZone, and NFL Fantasy in exchange for a 10% equity stake.
The new partnership aims to broaden the reach of NFL content through Disney’s expanding streaming footprint. ESPN plans to integrate NFL Network into its upcoming direct-to-consumer platform, set to launch Aug. 21 at a price point of $29.99 a month, while preserving distribution via cable and satellite. The value of the stake was not disclosed.
Disney stock initially rose following the NFL news, but slipped about 2% shortly after Wednesday’s open as investors digested the company’s Q3 earnings report.
“This deal helps fuel ESPN’s digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service,” Jimmy Pitaro, chairman of ESPN, said in a statement.
On the earnings call Wednesday, Disney CEO Bob Iger said the NFL deal will be accretive in its first year post-close, citing increased revenue and operating income from distributing NFL media assets, plus potential upside from lower churn and advertising.
Alongside the acquisition, ESPN and the NFL have also entered into a second non-binding agreement. Under the terms, the league will license certain NFL content and intellectual property to ESPN for use across the newly acquired NFL Media assets.
The NFL agreement comes ahead of another major rights deal unveiled this week: ESPN will become the exclusive US streaming home of WWE Premium Live Events, including WrestleMania and SummerSlam, beginning in 2026 — a move seen as further strengthening the content lineup for its new DTC service.