It would be one of a number of potential buyers.
Time Inc., whose publications include Time, People, Sports Illustrated, and Fortune has heard a presentation from Citigroup 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 spunoff unit, Bloomberg reported.
Yahoo CEO Marissa Mayer would not be part of the company under such a deal, Bloomberg reported, citing one of its sources.
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.