MCV reports. An official announcement is expected next week. Direct2Drive does offer a limited selection of game rentals, which fits in directly with GameFly's business model. Sources, while unable to confirm the sale, do tell us that IGN has been looking to unload D2D for some time.
This would be the second major announcement out of News Corp's IGN in under a month. The company announced in early May it was merging with UGO, and reports indicated that the company would spin off from News Corp.
IGN and GameFly told Joystiq in perfect harmony that neither company will "comment on rumors or speculation."