"We view this as a 'home-run deal' for Disney and while its an aggressive acquisition with a high price tag, in our opinion this is the right move at the right time as the marriage of these assets creates a much more formidable Disney," Ives said.
Shares of Disney gained 2.8 percent, while Fox shares shot up nearly 6.5 percent.
The deal comes at a time when megadeals have fallen significantly. PwC said in a report Thursday that megadeals —those worth more than $5 billion — are down this year to 38 form 58 in 2016.
But a record dollar amount in deals announced in November, coupled with an expected U.S. tax code revamp, could "herald a comeback for deal values and megadeals," PwC said.
Wall Street also received positive news in the form of economic data. Weekly jobless claims totaled 225,000, well below an estimate of 239,000. Meanwhile, retail sales rose 0.8 percent in November versus an estimated increase of 0.3 percent.
"That retail sales number was off the charts," said JJ Kinahan, chief market strategist at TD Ameritrade. "That said, it's not a reason to buy the whole sector. Retail is still an individual company story."
The positive data were released a day after the Federal Reserve felt confident enough in the economy to raise interest rates for the third time this year.
—CNBC's Michelle Castillo contributed to this report.