Discussions between Yahoo and its Asian partners China’s Alibaba Group and Japan’s Softbank Corporation over the sale of US Internet company’s Asian assets were called off.
The failure of the deal, referred to as a cash-rich split-off, is described as the latest setback for Yahoo, which is struggling to solve its problematic Asian partnerships, according to Reuters.
It threw a spanner into the plans of a $17bn tax-free asset swap between the two companies.
Earlier, investor Daniel Loeb of the hedge fund ThirdPoint wanted to nominate his own set of directors on Yahoo’s board, causing more headaches for the search engine company.
A report by the technology blog AllThingsDigital, stated the deal "hit a series of snags," two months after the companies agreed to the terms for a deal.
Reports revealed that Yahoo remained committed to continuing negotiations and could enter into another deal with its Asian partners.
It was, however, not yet known as to why the talks failed.
