Pay television giant Foxtel has abandoned plans for a takeover of struggling Ten Network Holdings, according a report by the Australian Financial Review.

The report alleged Foxtel was working on a joint bid for Ten with a private US equity firm that would have given the pay TV company a 10 to 20 per cent share in Ten.

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The negotiations were reportedly decided against by Foxtel last month for a number of reasons, including disagreements over price and structure.

The takeover bid if successful would have caused consolidation in the Australian media industry, with Foxtel owned by telecommunications giant Telstra and Rupert Murdoch’s News Corporation.

There were concerns that Ten would have too much power in markets such as sports rights, with Ten effectively backed by NewsCorp and Telstra.

Ten directors believe the company, which has struggled with weak ratings and earnings over the past three years, would have a better chance of surviving if it was “taken private”.