AT&T, the No. 2 U.S. wireless carrier, has made a bid for Yahoo’s Internet business, Bloomberg reported on Wednesday, citing people familiar with the matter.
Yahoo’s shares recouped some of their losses following the report and were down 1.9% at $36.79 in late morning trading. They had dropped as much as 3.7% earlier.
AT&T (T) had previously decided against making an offer, people familiar with the matter told Bloomberg in April.
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Reuters, citing sources, reported on April 29 that Yahoo had shortlisted close to 10 bidders in an auction for its Internet business, including Verizon Communications (VZ), the biggest U.S. wireless carrier.
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While Verizon remains a favorite, it didn’t submit one of the highest first-round bids, Bloomberg reported on Wednesday, citing two of the people.
Digital advertising company YP Holdings, which is backed by AT&T, is no longer pursuing a bid, the report said.
Yahoo and AT&T did not immediately respond to a request for comment.