UPDATE 11.30am: The Macquarie Radio Network has announced that it will be temporarily suspending all advertising on Alan Jones' 2GB breakfast show.
The move follows comments made by Jones at a Sydney University Liberal Club dinner that Prime Minister Julia Gillard's father "died of shame" because of his daughter's "lies".
The network's executive chairman, Russell Tate, said the reaction to Jones' remarks had forced it to "call time out" for advertisers.
"The nature, tone and volume of the reaction to Jones' remarks, and in particular the threats being made through social media to companies advertising in Jones' program and the disruption being caused to their businesses, have made it necessary for MRN to call some time out," he said.
"There is almost universal agreement that Jones' remarks were unacceptable, wrong and inexcusable."
He noted the influential shock jock had immediately arranged a press conference to publicly apologise to Ms Gillard last Sunday, and made a further "unambiguous and unconditional" apology on air last Tuesday.
"Although the remarks were not made on 2GB, our position from the outset has been that a personal, unconditional apology was a necessary and appropriate response," Mr Tate said.
Mr Tate said that while Jones' audience had found his remarks "unacceptable", there was no indication from his regular listeners "that their attitudes towards companies advertising in the program has changed adversely".
Mr Tate blamed "21st century censorship, via cyber-bullying" for the decision to suspend advertising.
"The avalanche of telephone, email and facebook demands to our advertisers to 'boycott' the Alan Jones Breakfast Show, and the threats to destroy their businesses if they don't comply, are coming almost entirely from people who do not listen to Alan Jones or 2GB at all - probably never have done and never will," he said.
"These people" did not have the right to decide what 2GB listeners heard on air or to tell Australian based companies where they advertise, Mr Tate said.
The "unprecedented decision" to suspend advertising until further notice would come at a very significant short-term cost to the network, Mr Tate said.
His comments follow reports on Sunday that Mercedes-Benz Australia-Pacific has demanded Jones return the black 2012 S-Class Mercedes given to him as part of his sponsorship deal, after the company stopped all radio advertising with 2GB.
"We want the car back, the deal is cancelled," the car company's corporate communications manager, David McCarthy, told News Limited.
"We were appalled and shocked at the lack of respect (Jones' comments) expressed."
Woolworths executive Simon Berger, who donated a chaff bag to the Liberal Club dinner where Jones made the controversial comments, also announced his resignation on Friday.
Jones had signed a jacket made from the chaff bag, which was donated to the function.
The broadcaster has said on air that the prime minister should be put in a sack and dropped into the ocean.