Media Company Stocks Are Higher After Time Warner Rejects Fox Buyout Offer

Shares of media giants like Disney, Comcast, and Discovery Communications are all higher after The New York Times reported that 21st Century Fox made an offer for Time Warner.

In pre-market trade, Discovery shares were up nearly 3%, while Comcast - which owns NBC - advanced 0.9%, and ABC-owner Disney gained 0.8%.

The offer, according to The New York Times' Andrew Ross Sorkin and Michael De La Merced, was rejected by Time Warner and valued the company at a bit more than $85 per share.

Following that report, other content providers are also ticking higher.

BI's Jay Yarow broke down some the dynamics at play in the cable industry, noting that a consolidation on the distribution side, like the deal for Comcast to buy Time Warner Cable and AT&T's play for DirecTV, will cause ripple effects on the content side.

Following the initial report, 21st Century Fox issued a press release announcing that it is currently not in talks with Time Warner, but the market reaction from Time Warner seems that investors believe a deal for the company will happen one way or another.