Interested buyers in Yahoo's core Web and Asian business have two weeks to submit preliminary bids, the Wall Street Journal (WSJ) reported late on Monday.
Citing unnamed sources, the WSJ said Yahoo recently sent a letter to investors asking them to detail by April 11 what assets they hope to buy, the expected price tag and how they would finance the purchase.
Yahoo's bankers have reached out to potential suitors, which include Verizon, Time and private-equity firms TPG and KKR & Co , the WSJ said.
Microsoft could join that list after Re/code reported last week that the software giant is interested in financing the bids of private equity firms.
Microsoft is looking to preserve the revenue produced from its search partnership with Yahoo if the latter's sale to a third-party succeeds, the WSJ noted in Monday's report.
Yahoo CEO Marissa Mayer has faced heavy criticism in recent months for the slow results of the search portal's restructuring program, especially from activist hedge-fund Starboard Value, which aims to overthrow Yahoo's entire board.
After calling off plans to spin off its ownership stake in Chinese e-commerce giant Alibaba late last year, Yahoo launched auction of its core business last month, for which it is seeking $10 billion, according to Re/code.
An emailed request to Yahoo outside of office hours wasn't immediately answered.
Read the full WSJ story here.