One bidder not expected to proceed is Silver Lake, which unbeknownst to many, sources said, submitted a non-binding letter of indicative interest in the final hours before the first bidding deadline on April 18. But sources said it was an exploratory probe more than anything and that the investment firm is not likely to participate in the next round.
Still, the sale effort cranks on, made easier with a lot of pressure off the process due to the settlement of Yahoo's proxy battle with Starboard Value. Several bidders said they were relieved that the company had settled the fight, with most of those whom I spoke to expressing relief that the investment firm has four new members on the Yahoo board.
"It makes it clearer," said one person, who described Starboard's CEO Jeffrey Smith as "rational" and "realistic."
"He'll want the most money for his investors, but he will not be playing games," said another bidder, who was worried that the sales effort would be blown up in the event of a proxy battle.
No longer. "Smith is someone we can deal with," said yet another possible acquirer of Yahoo. "And he will make sure Mayer does not try to throw a wrench into the sale."
Apparently, it's already working.
—By Kara Swisher, Recode.net.
CNBC's parent NBC Universal is an investor in Recode's parent Revere Digital, and the companies have a content-sharing arrangement.