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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.

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.