I don’t think this is a bad move, they might even want to divest from their other side projects too. They are mostly distractions and money sinks.
The project was also already dead; the English Wikinews has had 10 "articles" posted in the last 3 weeks, two of which were trivial sports stories (a second-division Queensland football match, and the retirement of a pitcher whose last substantial year in MLB was 2019). The most recent story is that an amateur jazz group recently played at a library.
It will no longer be an attractive nuisance to the few who stumble across it. Rest in peace.