Disney's ESPN and the National Football League (NFL) announced on Tuesday (August 5) a landmark agreement to acquire the NFL Network and other media assets from the NFL in exchange for a 10% stake in ESPN.

ESPN said the deal will bolster the content offerings for its upcoming ESPN streaming service, which is still subject to regulatory approval. Financial terms of the transaction were not disclosed.

ESPN will also acquire the digital channel NFL Fantasy and gain the rights to distribute the NFL RedZone TV channel to cable and satellite customers.

Disney CEO Robert Iger said in a statement: "Today's announcement paves the way for the world's leading sports media brand and America's favorite sport to deliver an even more compelling experience for NFL fans, something only ESPN and Disney can deliver."

Sources said the deal could be worth billions of dollars, but ESPN declined to comment.

Iger said ESPN's streaming service could launch as early as this month for $29.99 per month.

It will offer ESPN's professional and college sports programming, including the NFL, NBA and WNBA, MLB and the NCAA Women's Basketball Championship, as well as studio shows like "SportsCenter" and "Pardon the Interruption."

Under the new agreement, ESPN will own and operate the television and streaming rights to the NFL Network, which will continue to broadcast seven games annually.

The NFL will continue to own, operate, and produce NFL RedZone and retain its digital distribution rights, and will retain ownership of certain media assets such as NFL Films, as well as platforms like the NFL Podcast Network and NFL+.