News: Verizon is planning to challenge AT&T in the third round of bidding, even though its bid is less than other offers.
AT&T and Verizon Communications are set to make final round of bids for Yahoo’s Internet business.
Reuters cited sources as saying that Yahoo will hold a board meeting to review second-round offers and reach out to bidders to alert them whether they will go ahead to the next round.
Yahoo plans to complete the auction by next month. The company started exploring a sale of its assets after continuous pressure from activist hedge fund Starboard Value LP.
Warren Buffett is also supporting a consortium bidding for Yahoo’s core internet assets.
Buffett, Chairman and CEO of Berkshire Hathaway, is among a group that includes Dan Gilbert, the founder of Quicken Loans.
The news agency said Buffett-backed consortium will make it to the final round and some private equity companies that had made it through to the second round will not be invited to submit third-round bids.
Yahoo, Verizon and AT&T declined to comment on the report.
Verizon plans to merge Yahoo with AOL, which it acquired for $4.4bn in 2015, to establish a digital advertising group.
AT&T intends to compete with Verizon in advertising technology as it plans to expand in mobile video offerings.
A sale of internet assets would leave Yahoo only hold a 35.5% stake in Yahoo Japan, as well as a 15% stake in Chinese e-commerce firm Alibaba.
Last December, Yahoo abandoned plans to spin off its remaining stake in Alibaba in favour of transferring its core internet business to a new company.