Sky News spin-off delays BSkyB buyout ruling

Separate company Newco requires government clearance.

News Corp's bid to acquire BSkyB could be delayed by up to two weeks due to complications in spinning off Sky News into a separate company, the FT reports.

To allay concerns that the bid would hand Rupert Murdoch too much control of the UK news market, it was proposed that Sky News be spun off into a separate company called Newco.

According to a report in today's Financial Times, merger clearance is being delayed because Ofcom and the Department for Culture, Media and Sport is requiring "detailed assurances on the financial and editorial independence of Newco and lawyers for the two sides are 'ironing out the creases'.

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