Yahoo could get bought by the Yellow Pages
The report said the bid would follow something called a Reverse Morris Trust, a deal structure that would allow YP to merge with Yahoo's spun-off core business.
Given that YP is worth only about $1 billion to $1.5 billion, such a structure would be the only option for YP to make a bid for Yahoo's core web properties, which some analysts say is worth at least $6 billion.
YP is controlled by Cerberus Capital Management, a private equity firm that bought the company for $950 million in 2012. AT&T also holds a minority stake in YP, meaning if the deal goes through, AT&T could wind up owning part of Yahoo, the report said.
The deadline for making preliminary deadline on Yahoo's core business is Monday. Verizon and a number of private equity firms, like TPG and Bain, are expected to place bids.
Although it's unclear how exactly a merger between YP and Yahoo would make sense for each other, there's one big benefit for Yahoo: YP owns the largest local advertising salesforce in the US, with over 3,300 sales reps. That's a huge team that could help sell ads against Yahoo's over 1 billion monthly visitors.