Following regulatory approval by U.S. Justice Department and other government agencies, ESPN and the NFL have announced that ESPN's purchase of the NFL Network and other league digital assets has been finalized.
Last August, ESPN and the NFL reached a wide-ranging series of deals that included an agreement for ESPN to acquire NFL Network, NFL Fantacy and other media assets in exchange for the league taking a 10% stake in ESPN.
In addition, ESPN and the league announced agreements for media rights and content distribution that were important for ESPN’s launch of its direct-to-consumer app. As part of those agreements, the NFL Network will be included in the direct-to-consumer app.
The content distribution agreements included the right to distribute RedZone channel to cable and satellite operators. "With the closing, we will begin integrating NFL employees into ESPN in the months ahead," ESPN and the NFL said in a joint statement. "As we look to the future, NFL fans can look forward to expanded NFL programming, greater access to NFL Network, innovative Fantasy experiences and unparalleled coverage of America's most popular sport."
Financial terms of the deal were not disclosed, but CNBC estimated that stake in ESPN could be worth $2 billion to $3 billion.
ESPN’s website reported that “NFL will continue to own, operate and produce the channel and retain the rights to distribute the channel digitally. ESPN would also get rights to the RedZone brand, meaning RedZone channels for college football, basketball or other sports could be coming in the future. NFL Fantasy Football will merge with ESPN Fantasy Football, giving ESPN the official fantasy football game of the league.”
More information is available here.
