AT&T makes bid for Yahoo Internet business: sources

New York

AT&T Inc has made a bid for Yahoo Inc, according to people familiar with the matter, and is a contender to acquire the Sunnyvale, California-based company's core Internet business.

The telecom giant had previously decided against making an offer, people familiar with the matter said in April. AT&T kept one foot in the process through its stake in digital advertising business YP Holdings LLC, which had proposed a merger with a subsidiary spun out of Yahoo's core business. However, YP is no longer pursuing such a transaction, said one of the people, all of whom asked not to be identified as the matter is private.