Fox, which like other broadcasters is battling a shift to on-demand TV, denied there had been any talks with Discovery, which owns Animal Planet and the Discovery Channel.

"No truth, not even any sort of talks", said John Connolly, a spokesman for the company in Australia. "There is no truth in the rumors."

The AFR reported senior executives from both companies met about two weeks ago to discuss a potential takeover bid, citing unnamed sources close to the situation.

The discussions were "nascent", and there was no guarantee that a formal offer would be made or that discussions have continued, it said.

Discovery declined to comment on the report.

(Reporting by Lincoln Feast and Byron Kaye in Sydney; Editing by Ian Geoghegan)