Speculation on the US markets last night suggests private equity group Silverlake Partners is in discussions with AOL about a takeover, with another firm Blackstone Group also being linked to a bid.
Yahoo currently owns 40% of China-based supplier site Alibaba, and any potential bid could result in the separate sale of the company.
Other reports suggest Rupert Murdoch’s NewsCorp is also consider a bid for Yahoo.
However the initial report by the Wall Street Journal suggested that any discussions by the bidders is in the very early stages, and Yahoo were not involved.
Microsoft failed to bid for Yahoo in 2008 for $40bn (£25bn). Yahoo’s market value is now thought to be around $20bn (£12.4bn), as the company has seen its fortunes slide with the likes of Google dominating the market.
Earlier this month three of its leading executives left the company in a shock exit move.