Fox and Apollo to create TV production giant.

Rupert Murdoch's 21st Century Fox and private equity giant Apollo Global Management are in preliminary talks to create a global television production house that would manage big hits like "American Idol" and "Deal or No Deal."

The deal would combine Fox's Shine Group as well as the Apollo-controlled Endemol and Core Media Group. The joint venture would be one of the largest reality TV producers in the world, controlling franchises like "Master Chef," "The Biggest Loser" and "Big Brother."

Joining forces would buttress both companies during a period of intense consolidation in the production industry, particularly among firms that specialize in unscripted shows. A number of deals were announced among broadcasters seeking to expand content and increase audience share.

"This gives them access to newer programming ideas and exposes them to the possibility of other concepts," said veteran media analyst Hal Vogel, "and may save them some money too."