21st Century Fox has said it would sell Sky News or ring fence the unit to satisfy regulators in its takeover of Sky (LON:SKY).

Disney is said to be interested in the unit and a sale would reduce the pressure on Fox from regulators who have raised concerns over editorial conflicts presented by Fox’s acquisition of Sky.

The Competition and Markets Authority had previously said the merger was not in the best interest of UK consumers due to the already extensive media empire of Rupert Murdoch and his family. The Murdoch family owns or has connections to The Sun, The Times, The Sunday Times as well as Sky.

The deal was originally announced last year as Rupert Murdoch sought to consolidate his stakes in both 21st Century Fox and Sky.

Today’s announcement for 21st Century Fox comes after a proposal in December to spin-off Fox News and Sports channels in a business named ‘Fox’ which would be one of the biggest news and sports outlets in the US.

As well as Fox News stations and the film business 21st Century Fox, Murdoch’s 21st Century Fox has investments in Hulu, Amstrad and National Geographic.