Disney recently had engaged in discussions with 21st Century Fox to buy its entertainment assets, a deal that would have huge implications for Hollywood.
CNBC first reported that the two conglomerates had been in preliminary, on-again/off-again talks, though they are in the "off again" mode right now.
As CNBC noted, Fox believes a "more tightly focused group of properties around news and sports could compete more effectively in the current marketplace."
Meanwhile, behemoth Disney is looking to get even bigger to compete with tech giants Google, Apple, Facebook, Netflix, and the soon-to-be-merged AT&T/Time Warner. Disney is preparing its own streaming service, which will house content from its many entertainment properties, including Pixar, Lucasfilm, and Marvel Entertainment.
The deal, if it were to happen, would include Fox's movie studio, television production company, and international assets like Sky TV. Disney cannot own two broadcast networks, so it cannot buy Fox. But it could take cable channels like FX and National Geographic.
A Disney/Fox merger would be particularly intriguing for fans of Marvel movies, since it would finally bring the "X-Men" universe (owned by Fox) back Marvel's control. "X-Men" vs. "Avengers," anyone?
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