Reuters

(Reuters)

Report: Time Inc Considering Buying Yahoo's Core Business

Industries Reuters

Time, the publisher of Sports Illustrated, People and Time magazine, is considering a deal to buy the core business of Yahoo, Bloomberg reported, citing people familiar with the matter.

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Time Inc has heard a presentation from Citigroup Inc bankers on pursuing a deal with Yahoo, the Bloomberg report said, adding that Citigroup had not been retained by Time. 

Yahoo officially launched the sale of its core business, which includes search, mail and news sites, last week.

Time Inc could pursue a Reverse Morris Trust transaction, a tax-free deal in which one company merges with a spun-off unit, Bloomberg reported.

Yahoo Chief Executive Marissa Mayer would not be part of the company under such a deal, Bloomberg reported, citing one of its sources.

Verizon Communications, which already owns Internet pioneer AOL, is also seen as a potential buyer of Yahoo's core business.

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Yahoo, Time Inc and Citigroup could not immediately be reached for comment.

Time Inc, which has seen print advertising dollars dry up in recent quarters, has been trying to boost its digital presence through acquisitions of online properties. Time Inc said earlier this month it would buy social networking pioneer MySpace.

(Reporting by Sai Sachin R in Bengaluru; Editing by Shounak Dasgupta)