Updated from 7:52 a.m. EDT

A planned stock deal valued at $7 billion for

Exodus Communications

( EXDS) to acquire the Web site hosting unit of

Global Crossing

(GBLX)

collapsed over the weekend, people close to companies

told

The New York Times

.

The deal hit a snag when Bermuda-based Global Crossing executives pushed for a clause in the deal that would protect their shareholders should Santa Clara, Calif.-based Exodus stock fall dramatically.

Instead, Global Crossing is now likely to take its Web unit,

Global Center

, public through an IPO, the report said.

Global Crossing finished down 2, or 6.1%, at 31.