UK Culture Secretary Jeremy Hunt said today he intends to accept News Corp's plans to spin off Sky News to address concerns over its planned takeover of BSkyB.
Rupert Murdoch's News Corp has proposed a deal to place the news operation into a separate company, but to retain a 39.1% stake in Sky News.
The move comes as News Corp seeks to avoid a full-blown competition inquiry into its plans to buy the 61% of BSkyB it does not already own after Mr Hunt said last month he planned to refer the deal to the Competition Commission.
News Corp is offering to sell off Sky News into a company controlled by independent directors and with an independent editorial board.
It would fund the news channel for ten years and agree a seven-year licensing agreement for it to use the Sky News name.
Mr Hunt will consult on the plans until 21 March before making a final decision.
