Disney first quarter earnings 'strong', in talks with Lionsgate over Miramax

The earnings were fuelled by sales over the last week of the quarter. which indluded New Years Day.

Comparing this year's results to last year's, which did not include New Years Day, the sales were down 44 cents a share.

Disney's largest division however, TV networks including ESPN rebounded due to strong ad sales and revenue was 7 pct higher.

Revenue in the companies movie studio and theme parks however were nearly flat.

Although the movie studio had success with "The Princess and the Frog", other launches such as "Old Dogs" failed, with Disney reporting a 1 pct drop in revenue.

Theme park and resort revenue was flat in line with analyst expectations that the recession would keep attendance down.

Disney, who recently acquired the Marvel Entertainment brand, are also in the process of selling their Miramax film unit.

Miramax, which produces art-house affairs such as "No Country for Old Men" was available for sale as its independent films do not tie in with Disney's younger audience brand.

Lions Gate Entertainment Corp and Summit Entertainment, which is behind the popular "Twilight" franchise are reportedly interested with a price tag of %500 million to $700 million expected.

Disney is expecting however $650 to $800 million.