James Murdoch, chairman of BSkyB—until this week. (Flickr/Creative Commons)

The pay-TV group is currently under investigation in Britain, with its broadcasting license hanging in the balance, according to Reuters. 

The 39-year-old former chairman of News International, the newspaper arm of News Corp, wrote a letter to the BSkyB board explaining his decision.

From Reuters:

"I am aware that my role as Chairman could become a lightning rod for BSkyB and I believe that my resignation will help to ensure that there is no false conflation with events at a separate organization," Murdoch said.

..."As attention continues to be paid to past events at News International, I am determined that the interests of BSkyB should not be undermined by matters outside the scope of this Company."

Murdoch will remain on the board but will be replaced by former deputy chairman and senior non-executive director Nicholas Ferguson. 

Meanwhile, a parliament committee will deliver a report soon on Murdoch's conduct. He is also under investigation by the UK's TV regulatory body and a judge-led inquiry into press ethics, Reuters reported.

Analysts are applauding the move as a smart gesture on the part of News Corp and Sky to hold onto their license.

Reach Catherine here; follow her here.