Sources: News Corp. Ditching Sky News

Rupert Murdoch’s News Corporation has proposed spinning off its Sky News unit in hopes that, without the news division, the British government will finally approve the takeover of Sky Broadcasting, sources said Wednesday. The British government has dragged its feet in approving News Corp.’s $12 billion bid to buy the remaining 61 percent of BSkyB, worried that Murdoch’s conglomerate would control too much of British media. If News Corp. is successful is buying BSkyB, the conglomerate would own the entertainment channel Sky1 and four Sky-branded sports channels that are the equivalent of ESPN, in addition to the major newspapers that News Corp. owns.