Could News Corp Really Close Sky News?

After the most recent developments in the phone hacking scandal gripping the United Kingdom, News Corporation has withdrawn its offer to hive off Sky News into an independent company in order to maintain media plurality.

So with the decision as to whether News Corp can now acquire the whole of the Uk's BSkyB, the owner of Sky News, in the hands of the Competition Commission, is is plausible that News Corp would consider closing Sky News much like it has the UK's biggest selling Sunday newspaper News of the World?

Most media commentators seem to think that such a move would be highly unlikely.  Furthermore, the immediate future of Sky News is certain to be secure whilst News Corp is unable to take full control of its parent.

However, the brutality of how the axe fell on the News of the World has some commentators twitching, could News Corp deal the same fate to the UK's first ever 24 hour news network?

The singlemost important factor in this must be the economic aspects of the Sky News operation.  It is no secret that Sky News makes a significant loss every year, and has done so since it first went to air over 20 years ago.

With that fact in mind, and going back to the fact that the News of the World newspaper, one of the only profitable UK papers in the News International, a subsidiary of News Corp, could be closed so swiftly, would give any outsider looking in, the impression that Sky News could simply be 'cut loose' in order to allow for the full acquisition of a company that produces £1bn in cash profit per year.

Sky News has many similarities to the News of the World, it has broken some of the biggest news stories around the world in its history, and is now widely regarded as a stalwart of the news media.

News Corp has also for many years played a very active role in shaping British politics, and will almost certainly use Sky News as a pawn in the battle to take control of BSkyB.

So back to my initial question, could News Corp really close Sky News in order to get its hands on BSkyB?

I have a strong inclination that if News Corp is forced to, or backed into a corner, it would have no regrets in pulling the plug.