The Project Kangaroo partners are believed to have invested about £20m in developing new technology for the video-on-demand service.
France Telecom, the parent company of mobile operator Orange, has emerged as a potential buyer of this technology, which is reportedly up for sale following a decision by the Competition Commission to block the service on the grounds that it would overly restrict competition in the broadband TV market.
A spokesperson for France Telecom said: "We are examining this company and we see of course that it could be interesting. Nothing has been decided but we can confirm we are examining it."
Orange could use the technology to strengthen its Orange TV broadband service across Europe.
Another unnamed technology firm is also believed to be interested in buying up the Project Kangaroo assets.