News Corp 'may split Sky and Sky News'

News Corp has said that it might separate Sky News from BSkyB to avoid a lengthy review of its move to take full control of the satellite broadcaster, according to reports.

Citing people familiar with talks between News Corp and the UK government, the Financial Times said that selling the 24-hour satellite news channel was one option the Rupert Murdoch-led media group was considering.

The department for culture, media and sport, which is examining the proposed 7.8 billion bid, declined to comment on the report, as did News Corp.

The media group wants to buy the 61 per cent of BSkyB it does not already own to consolidate cashflows from a business it helped build. Rivals have raised concerns that the merger would give Murdoch too much influence over public opinion.