Murdoch's offer to sell Sky News
News Corporation has offered to sell Sky News and also subsidise the channel for years, to allay concerns about News Corp's planned takeover of all of British Sky Broadcasting.
As a result News Corp is likely to get the green light for the takeover from Jeremy Hunt, the Culture Secretary, possibly as soon as tomorrow.
One of Jeremy Hunt's close colleagues insisted he has not yet made the formal decision to approve News Corp's £7.5bn bid to buy the 61% of BSkyB it doesn't already own, but didn't rule out that Mr Hunt could do so within hours.
If Mr Hunt allows the bid to proceed, which is what I expect, some will see that as a u-turn, because on 25 January he said he was intending to follow the advice of the media regulator, Ofcom, and refer the planned takeover to the Competition Commission for further scrutiny.
Since then, however, Rupert Murdoch's News Corp has made a proposal designed to remedy the harm identified by Ofcom from the deal.
Ofcom was concerned that the combination of News Corp's market-leading newspapers with BSkyB's 24-hour rolling news channel, Sky News, would reduce plurality or choice of news for citizens.
So in what News Corp sees as a significant concession and sacrifice, it has offered to sell Sky News. And because Sky News is lossmaking - to the tune of more than £20m a year according to sources - it has also offered to in effect cover the costs of Sky News for many years through a long-term contract.
Bankers tell me that with such a long term contract in place from BSkyB, Sky News is capable of being sold.
In making his announcement, Mr Hunt would initiate a 15 day period of public consultation.
Critics of the takeover, which include news organisations such as the Telegraph Group and DMGT, owner of the Daily Mail, would complain that News Corporation will become far too powerful a player in the UK media market, if it is able to combine its newspapers (which include the Sun, Times and Sunday Times) with BSkyB's huge, cash-generating broadcasting business.
These opponents of the deal have a problem however, in that their arguments are largely about the impact on competition, not plurality or choice, and the European Commission has already ruled that the combination of Sky and News Corp would not have an adverse impact on competition.
That said, the decision by Mr Hunt to allow the takeover to proceed does not mean the deal will definitely go through - because it is not certain that News Corporation will offer a high enough price to persuade the independent directors of BSkyB to recommend the offer or to persuade shareholders in BSkyB to sell.
Last June, News Corp said it would pay 700p for each BSkyB share, valuing the 61% of the business it doesn't own at £7.5bn.
That was rejected by BSkyB's directors, who said that they wanted more than 800p per share, or around £1bn more in total.
BSkyB's operations have performed well since then, so it is widely thought in the City that BSkyB's independent directors will now be demanding nearer 850p per share.
It is by no means certain that News Corp - whose BSkyB ambitions are being run by James Murdoch, who runs News Corp's European and Asian operations - will offer as much as that.
If, as the FT reports, what has been proposed by News Corp is a demerger of Sky News to BSkyB's existing shareholders, which include News Corp with 39 per cent, that represents the sale by News Corp of 61 per cent (a majority) of Sky News (on the assumption that News Corp ends up owning all of BSkyB, which is by no means certain).
The idea of demerging Sky News to BSkyB's existing shareholders is a neat regulatory fix, because in theory that can be seen as representing no change in the relationship between News Corp and Sky News.