Sky Network Television will not proceed with the acquisition of New Zealand’s radio and advertising firm Mediaworks.

In a statement released today Sky says that “it has ceased discussions to evaluate the possible acquisition of MediaWorks Holdings Limited.

As previously communicated, in parallel with its evaluation of potential investment opportunities, Sky has been exploring options to return capital to shareholders and accelerate organic investment in the business to drive further growth.”

Sky shareholders will get an update on its capital management plan by late August in time for the company’s full year results.

Early this month Sky had confirmed it was looking at purchasing Mediaworks, but negative investor reaction and a reduction of their share price by 7.2 per cent as well as a pushback by institutional investors is thought to have been behind this latest decision.

In an email to staff, MediaWorks CEO Cam Wallace told staff that the discussions with Sky TV had ended saying, “I’d like to thank everyone who’s been involved in the process for their patience as we worked our way through it.

 “I know there have been many questions so I’d also like to acknowledge that this has been unsettling for some of you.”