Shares of media and entertainment giant Walt Disney (NYSE:DIS) jumped as much as 7.1% on Monday, following a report from The Wall Street Journal this weekend that the company has "re-engaged in discussions" with Twenty-First Century Fox (NASDAQ:FOX) (NASDAQ:FOXA) about purchasing some of its assets. The stock is up 5.1% at the time of this writing.
Citing "people familiar with the situation," the Journal says Comcast (NASDAQ:CMCSA) is also involved in a possible deal being considered. Fox is reportedly considering selling its movie and TV studios, some of its international assets, and some U.S. cable networks. But "Fox News, the Fox broadcast network and sports network FS1 aren't expected to be sold in any transaction," WSJ says.
Fox's stake in Hulu is also being discussed as a potential asset for sale. Fox, Disney, and Comcast each currently have 30% stakes in the streaming TV service.
Disney has proven its knack for buying movie studios with popular franchises and turning them into entertainment behemoths. Examples of previously successful acquisitions include Pixar, Marvel, and Lucasfilm. Fox boasts the popular X-men series -- a franchise investors likely anticipate would be a good fit for Disney.
Disney's studio entertainment operating income was $2.4 billion in fiscal 2017, up from $618 million in 2011.
Though WSJ does say these talks are "gaining momentum," the report also says there's a chance the deal could fall through.
If a deal is made, Fox is expected to make its decision by the end of the year.