American telecoms juggernaut Verizon will reportedly offer about $3bn for Yahoo's core internet business in a second round of bidding.
The Wall Street Journal quoted "people familiar with the matter" as saying that Verizon and private equity firm TPG had offered bids on Monday.
Other bidders interested in purchasing parts of Yahoo's business are private equity firms Advent International and Vista Equity Partners, and a group led by Quicken Loans founder Dan Gilbert, although these players are understood to be pursuing different assets.
Yahoo announced in March that it was exploring the sale of non-core assets, including real estate and patents, which the firm valued at $1bn to $3bn.
Verizon is understood to be interested in Yahoo's core internet business rather than these peripheral assets.
The US telecoms firm has expanded its business into the provision of online ads in recent years. The company acquired AOL for $4.4bn in May 2015, and with it AOL's mobile video and online advertising technology which Verizon is integrating into its smartphone and internet advertising offerings and cable TV business.
Verizon is presumably interested in serving ads to Yahoo's one billion monthly visitors across its various web properties.
This report is the latest in a string of acquisition rumours concerning Yahoo, which is valued in total at £35bn. The vast majority of this is down to its holdings in Chinese internet firm Alibaba and Yahoo Japan.
It was reported in March that Microsoft had been in preliminary talks with private equity companies interested in acquiring Yahoo's core businesses, and Daily Mail publisher DMGT confirmed in April that it was in discussions with financiers to snap up the ailing internet firm, although in both cases negotiations were said to be in the early stages. It was reported this week that Twitter has also been in talks with Yahoo.
Yahoo's core internet assets were valued at $4bn to $8bn in April, meaning that the reported Verizon bid has come in lower than these expectations.
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