ITV has abandoned its £1 billion pursuit of Peppa Pig owner Entertainment One.
The broadcaster said on Thursday that it has withdrawn its proposal to take over the Canada-based firm after Entertainment One rejected an initial offer earlier this month.
ITV said in a statement: "ITV continues to believe in the strategic logic and potential benefits of acquiring Entertainment One, but has a clear view of the value of the business, recognising that this value would need to be verified by appropriate due diligence.
"It appears this value is different to the level at which the board of Entertainment One would currently engage in a more formal process."
Entertainment One had previously "unanimously rejected" a 236p-a-share proposal as it believes it "fundamentally undervalues" the group.
Entertainment One owns the rights to TV shows including Peppa Pig - the cartoon character who has turned into a global children's phenomenon.
It also owns more than 40,000 film and television titles, including last year's Oscar-winning hit Spotlight, and its Amblin Partners venture with Steven Spielberg is behind this summer's movie The BFG, based on Roald Dahl's classic children's book.
ITV said it will continue with its strategy to "build a stronger, more diversified international business".
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