Walt Disney is not interested in buying Telefonica's 75% stake in TV producer Endemol, a source close to the company said on Tuesday.
"We are not interested in it," said the source.
Disney was touted on Monday as possibly being interested with Endemol co-founder John de Mol in forming an alliance to repurchase the Dutch production house.
Telefonica expects to sell its Endemol stake in the first quarter this year.
Shares in Endemol jumped as much as 12% on Tuesday following a Spanish newspaper report that Rupert Murdoch, who controls News Corp. , was interested in buying Telefonica's stake.