UK greenlights News Corp. buyout of Sky

In a controversial move, the Conservative-led coalition said Thursday it will give News Corp. the green light to buy the remaining 61 percent of BSkyB it does not already own -- on the condition that it spin off its Sky news channel as an independent company.

The ruling, which is subject to industry consultation and potential legal challenges, was immediately attacked by a coalition of other major media outlets and the opposition Labour Party.

News Corp. made the concession to hive off Sky to avoid a prolonged investigation by competition regulators into the proposed 12.3-billion-pound ($20-billion) deal, one of its most politically charged takeovers in years.

Opponents are concerned that the company, which already owns the top-selling tabloid newspaper, The Sun, as well as The Times, The Sunday Times and the News of the World, will have too strong a voice in the British media industry. They also question the government's relationship with Murdoch's powerful news group.