LibertyOne's chief executive officer, Warren Lee has resigned and the company has ceased merger discussions.
Effective immediately, Lee's resignation from the board and as an executive is due to "personal reasons," a spokesperson said. "It was all done on good terms."
LibertyOne's chairman, Jerry Austin, said "We thank Warren for his contribution to LibertyOne and wish him well in his future endeavors."
Lee was currently unavailable for comment.
LibertyOne also announced that discussions with another undisclosed company, believed to be China.com, have ceased.
The discussions, which officially commenced on 6 October, were terminated because of failure to resolve "material commercial issues".
Lee's resignation is unrelated to the discontinuation, officials said.
"I believe the decision was made in the best interests of LibertyOne's shareholders," managing director Graham Bristow said in a statement.
Bristow highlighted underlying company principles supporting the decision, citing "accretion of shareholder value" as one of the company's chief aims.
The internet and Web solutions provider is currently in pursuit of new business initiatives with a primary goal to increase shareholder values.
"Much like our recent successful launch of uBid Australia, we think these initiatives hold significant potential," Bristow said.
The board also named Jack Surdoval - previously senior manager with Deloitte Touche Tohmatsu - as chief financial officer of LibertyOne.
Bristow will assume the role of chief executive.