Permira, the majority shareholder in the UK independent production giant, was hoping to attract an offer of up to £750m for All3Media after it hired UBS to look at options for a sale in April.
Despite reported interest from American Idol owner Apollo and Sony Pictures Television, Permira has opted to pull the sale process after the tabled bids failed to meet its expectations, reports the Financial Times.
Permira was thought to be asking between £650m and £750m for All3Media, which also owns the producers of Skins and Hollyoaks, based on 12 times forecast earnings for 2011.
That would have been the same multiple that Elisabeth Murdoch got for Shine Television from her father Rupert's company News Corporation, although that deal was criticised by News Corp shareholders as being overpriced in the current market.
Early speculation was that ITV would move for All3Media to boost the flagging fortunes of its production arm ITV Studios, but the broadcaster was among various parties that baulked at Permira's asking price.
All3Media was formed in 2003 by former ITV executives Steve Morrison, David Liddiment and Jules Burns after they paid £45m to acquire Chrysalis's TV business.