Initial, an arm of Endemol Entertainment UK, was pitching to produce the show but Initial's managing director Tim Hincks admitted the proposal had been pulled.
Hincks told Broadcast: 'We have a really hot idea but we've costed it and it falls outside the tariff for C4's new breakfast show slot. We've told C4 we can't take part as it's too expensive and have all agreed to put it to one side.' The decision was made two weeks ago. Hincks said the indie would continue to develop its idea for another slot.
The indie had emerged as the industry's favourite when it appeared on a shortlist of eight producers last month.