Bolt Media's inability to reach music licensing deals with major record labels has pushed online video company GoFish to cancel its pending acquisition of the company.

Universal Music Group had sued Bolt Media for copyright infringement, saying the social networking site allowed members to post music files to their profiles without permission or compensation. GoFish in February agreed to acquire Bolt for $30 million, as part of a $10 million settlement of the lawsuit. However the deal was contingent on Bolt reaching licensing deals with other labels to avoid additional lawsuits in the future.

GoFish says that Bolt could not meet those conditions.

"After concerted efforts to reach a viable economic settlement with the music industry, we concluded that Bolt's potential liabilities would be too difficult for GoFish to absorb at this time," said GoFish president Tabree Verjee in a statement.