Report: Disney, Fox Talked Deal

21st Century Fox has been holding talks to sell most of the company to Walt Disney Co., leaving behind a media company tightly focused on news and sports, according to CNBC.

The talks have taken place over the last few weeks and there is no certainty they will lead to a deal. The two sides are not currently talking at this very moment, but given the on again, off again nature of the talks, they could be revisited.

Disney would not purchase all of Fox, according to people with knowledge of the talks.

For Fox, the willingness to engage in sale talks with Disney stems from a growing belief among its senior management that scale in media is of immediate importance and that there is not a path to gain that scale in entertainment through acquisition. The company is said to believe that a more tightly group of properties around news and sports could compete more effectively in the current marketplace.

The media landscape has changed considerably in recent years with giants such as Facebook, Google, Amazon and Netflix changing the way people consume media and dominating the digital distribution of digital video content. Being able to compete in that changing landscape, many people believe, requires scale that a Disney has, but 21s Century Fox does not.

For Disney, the opportunity to take control of another movie studio and significant TV production assets as it readies a direct to consumer entertainment streaming offering is attractive as is Fox's significant exposure to international markets, such as the U.K., Germany and Italy both through its networks and 30 percent ownership of B Sky B.

Shares in 21st Century Fox spiked in midday trading Monday following a report from CNBC that the Murdochs have held talks in recent weeks to sell a large portion of the media conglomerate to Disney.