Rupert and James Murdoch
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Culture Secretary gives News Corp's BSkyB bid more time

25 January 2011 Last updated at 19:28 GMT

The Culture Secretary, Jeremy Hunt, has said that he intends to refer News Corporation's bid for BSkyB to the Competition Commission.

But he has given News Corp extra time to address concerns he has regarding "potential threats to media plurality".

These concerns were identified in a report by the media watchdog Ofcom, which also recommended referring the merger to the Competition Commission.

News Corp already has a 39% stake in BSkyB and is trying to buy the rest.

The BBC's business editor Robert Peston reports.