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A source familiar with the process told Bloomberg that Verizon, Comcast, and AT&T are interested parties, as well as private equity buyers like Bain Capital, KKR, and TPG.
Even if talks do begin tomorrow, first-round bids likely won't start for at least a month, Bloomberg's source says.
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The company had originally planned on spinning-off its stake in Chinese ecommerce company Alibaba, but those plans halted in December due to potential tax complications.
Yahoo's core business includes search, mail, and its news sites. Earlier this week, the company's media units saw significant layoffs.
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Business Insider reached out to Yahoo for comment.