Verizon Communications said it could look at acquiring Yahoo’s core business if an agreement made sense.
Verizon chief financial officer Fran Shammo said: "If we see there is a strategic fit and it makes sense for our shareholders and we can return value, I mean we’ll look at it, but at this point it’s way too premature to talk about that one."
Earlier this year, Verizon acquired American multinational mass media firm AOL in a $4.4bn deal.
Yahoo’s board of directors earlier held a meeting about the proposed sale of its 15% stake in Chinese e-commerce firm Alibaba.
The company has been struggling to revive its core online advertising business. The efforts taken by Yahoo Chief Executive Marissa Mayer to restore the businesses did not yield better results.
Last month, activist shareholder Starboard Value urged Yahoo to stop its plan to sell off its stake in Alibaba.
