News Corp already owns 39% of BSkyB
News Corporation has withdrawn its proposed undertaking to sell Sky News as part of its attempt to take over broadcaster BSkyB.
The spin-off of Sky News had initially been the key condition if News Corp was to be allowed to take over BSkyB.
But in light of the phone-hacking scandal, the culture secretary is seeking fresh advice from regulators.
BBC business editor Robert Peston said News Corp was asking for its bid to be referred to the Competition Commission.
News Corp already owns 39% of BSkyB but wants to take full control of the firm.