Companies, including Verizon, looking to bid for some or all of Yahoo’s core business may make an offer of around $2 billion to $3 billion, less than the $4 billion to $8 billion previously expected, The Wall Street Journal reported.

Bidders lowered their expected prices following sale presentations by Yahoo’s CEO, Marissa Mayer, and disclosure of data that detailed the company’s “flagging prospects”, the report said.

Potential buyers have also had access to a data room with nonpublic details about the company’s financial performance and prospects.

Yahoo said last month its first quarter revenue fell 11.3 per cent and it posted a net loss of $99 million.

In the first bidding round, no two offers were reportedly the same and sources believe Verizon is set to be the leading candidate in the shortlist, facing competition from other companies and private equity firms. The latter may make offers in the lower end of the range.

However, some offers could be above the $2 billion to $3 billion range as bidders typically play down their enthusiasm in an auction, the report said.

The deadline for the next round of bids is reportedly the first week of June for the next round. It is unclear if that will be the final round or if there will be one more.

Other bidders include an investor group made up of Bain Capital, Vista Equity Partners and former Yahoo CEO Ross Levinsohn.

Dan Gilbert, a Detroit investor, may also join in and may be backed by billionaire Warren Buffett, whose company Berkshire Hathaway was recently linked to a bid for Yahoo’s internet assets.

In meetings with suitors, Mayer admitted that Yahoo is “still in the middle of a turnaround”, the report said, adding that if bids are much lower than expected, Yahoo may decide to give up on the sale and proceed with Mayer’s “turnaround effort”.