A previous report by TechCrunch hinted at a possible deal to the tune of $900 million, citing unnamed sources early Wednesday morning. Nevertheless, this rumor has no truth to it, CNBC's David Faber said on "Squawk on the Street," citing sources close to the situation.
Still, Yahoo CEO Marissa Mayer is moving toward reviving the company's mobile presence. Yahoo previously acquired social blogging app Tumblr and inked a deal with Yelp to power location-based reviews.
Yahoo's stocks were down 0.35 percent at midday trading. Click here to see the latest.
—CNBC's David Faber contributed to this report.