Global Traffic Network Inc is pulling out of an agreement to purchase the commercial division of UBC Media.
The decision comes just two weeks before the £15m deal was meant to be completed, which would have seen GTN providing entertainment news and features to all of UBC's current commercial clients.
The U-Turn is being blamed on the uncertain economic conditions facing the radio industry, although conversations between UBC and GTN are continuing.
John Quinn, UBC chief operating officer, said: "Due to ever worsening trading conditions in their markets and ours, there is a certain amount of nervousness that prevented a deal being done. From our side, this negotiation has been a distraction. There are still conversations going on but moving forwards its business as usual."