No committed financing was required for second-round bids, and Yahoo will assemble in the coming days a new shortlist of bidders from which it will solicit binding offers.
The company has sent letters to a number of potential buyers for the patents, which date back to when the company was founded in 1996 and also include its original search technology.
Yahoo is expected to hold at least one more round of bidding, and the offers could change by the final round, the paper reported.
Mergers and Acquisitions
A news report, citing sources close to the talks, said execs at the two firms had met several weeks ago and had spent several hours looking at whether a strategic combination might make sense.
Bidders include frontrunner Verizon, inventor Dan Gilbert (backed by Warren Buffett), TPG, and a consortium that includes Bain Capital and former Yahoo CEO Ross Levinsohn.
He also offered to help finance a deal to acquire Yahoo.
The deal had been in place for 15 years.
Game of Thrones
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Look back at over two decades of turmoil at a company that once sat atop the World Wed Web, and weep.
Verizon's been interested in Yahoo since December.
Yahoo launched an auction of its core business in February after it shelved plans to spin off its stake in Chinese ecommerce giant Alibaba.
Bidders were asked details about financing, conditions or approvals the company would need to meet, according to The Wall Street Journal.
Yahoo launched an auction of its core business in February.
Starboard, which owns an estimated 1.7 percent of Yahoo, said it would nominate nine candidates as possible replacements.