Rupert Murdoch's News Corporation will not sell community newspapers it obtained as part of its Dow Jones & Co. buyout in December last year, the Associated Press reported.

The Ottaway group newspapers, which News Corp. has previously slated for sale, include Oregon's Medford Mail Tribune and the Times Herald-Record in New York. Several of the newspapers posted stories online Tuesday stating the sale out not take place after all.

News Corp. bought the Wall Street Journal publisher for US$5 billion, and before the deal closed, the company stated it would consider selling the regional newspaper group, which operates eight daily newspapers and 15 weeklies, according to the AP. The newspapers are spread across seven states.

Newspaper company valuations have dropped since the takeover, but News Corp. did not give a reason for deciding to not sell. A News Corp. spokesperson referred the AP to Dow Jones, which declined to comment, the AP reported.