• by Mark Walsh , February 14, 2012

Talks between Yahoo and China-based Alibaba Group over the sale of the Web portal’s Asian assets have broken down, according to reports Tuesday. The impasse throws into question Yahoo’s goal of reaping an estimated $17 billion from selling back its stakes in Alibaba and Yahoo Japan back to those companies.

The hitch in negotiations came on the same day activist investor Daniel Loeb, who runs hedge fund ThirdPoint, disclosed plans to nominate former NBC Universal CEO Jeff Zucker, himself and two others for Yahoo's board, in a regulatory filing with the SEC. Yahoo Chairman Roy Bostock last week announced his plans to step down, along with three other longtime board members.

It was Bostock who launched a strategic review at Yahoo last year following the firing of former CEO Carol Bartz. That effort has led to ongoing talks with various potential investors including private equity firms to sell all or parts of the company, with a deal for the Asian assets appearing the most likely—until now. The parties had reportedly agreed to basic terms two months ago before hitting a snag.