Ofcom has escalated its investigation into whether BSkyB remains a "fit and proper" owner of a broadcasting licence.
The media regulator has asked Rupert Murdoch's company News Group Newspapers - publisher of The Sun and the now-defunct News of the World (NotW) - to provide it with a series of documents relating to the civil litigation that the media company is involved in.
Broadcasting regulator Ofcom has set up a dedicated team to investigate whether BSkyB is a "fit and proper" owner of a broadcasting license.
Ofcom told the Financial Times in a Freedom of Information disclosure that a dedicated team was investigating material emerging from the Leveson inquiry.
If Ofcom decides there has been rum goings-on it could force the resignation of James Murdoch, who is still chairman of BSkyB, and/or the halving of NewsCorp's stake in the company to below 20 per cent, destabilising the stock.