Talks over a deal for Sky to buy ISP Tiscali have broken down due to the adverse market conditions.
Tiscali, which has 1.8m subscribers, has now asked banks to suspend its E11m (£9.9m) interest rate repayments on its E500m (£450m) debt.
The ISP said the economic climate made the deal “almost impossible”. Discussions between the two over a sale began in November.
The confirmation follows reports in December that Sky wasn’t prepared to meet the £600m asking price for the business.
This story first appeared on newmediaage.co.uk