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A Disney-21st Century Fox deal could spur wave of 'far-fetched' content deals, analyst says

A Disney-21st Century Fox deal could be "revolutionary" and spur a wave of content deals, analyst Tuna Amobi told CNBC on Monday.

Twenty-First Century Fox has been holding talks to sell most of the company to Disney, leaving behind a media company focused on news and sports, people familiar with the situation told CNBC.

Amobi said the excitement over a possible deal is "palpable."

"You can really see some really far-fetched deals that were previously inconceivable start to happen," the senior analyst with CFRA Research said in an interview with "Closing Bell."

"You are going to be probably looking at more sizable whole acquisitions that could really be on a level that we have not really witnessed for a long time," he added.

Bill Smead, CEO and chief investment officer of Smead Capital Management, believes that content creation is "woefully undervalued" in the market.

"Everyone thinks that the technology and the distribution is the most important thing in the game and the truth of it is great content is what matters the most," he told "Closing Bell."

Officials at Disney and Fox declined to comment on the reported talks.

Shares of Disney closed up 2 percent on Monday, while 21st Century Fox popped almost 10 percent.

— CNBC's David Faber contributed to this report.

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