A sign outside the 21st Century Fox headquarters in New York.

Media giants Disney and 21st Century Fox haven't given up on the idea of combining movie and television production operations, CNBC's David Faber said Friday.

"Pencils aren't down," he said, citing sources.

Shares of 21 Century Fox rose 4 percent in early trading Friday.

Earlier this week, Faber broke the news that Disney had approached 21 Century Fox about a deal to acquire the movie and television assets, leaving 21 Century Fox with a tighter focus on news and sports. The talks had taken place recently, he said, but they were not currently in discussions.

On Friday, Faber said that although the two companies have not been engaged in conversations "it does appear at the very least that they have not abandoned the idea of that combination."

Shares of Disney rose 2.9 percent in trading Friday after the company reported earnings the day before.

Disney is up 7 percent week to date and Fox has risen 18 percent so far this week, according to FactSet.