Time Inc, the publisher of People and Time magazine and Sports Illustrated, is considering a deal to buy the core business of Yahoo, Bloomberg has reported, citing people familiar with the matter. 

Time has heard a presentation from Citigroup bankers on pursuing a deal with Yahoo, the Bloomberg report said, adding that Citigroup had not been retained by Time. 

Yahoo officially launched the sale of its core business, which includes search, mail and news sites, last week. 

Time could pursue a "Reverse Morris Trust transaction", a tax-free deal in which one company merges with a spun-off unit, Bloomberg said. 

Yahoo chief executive Marissa Mayer would not be part of the company under such a deal, the report added. 

Verizon Communications, which already owns Internet pioneer AOL, is also seen as a potential buyer of Yahoo's core business. 

Time, which has seen print advertising dollars dry up in recent quarters, has been trying to boost its digital presence through acquisitions of online properties.

Time Inc said earlier this month it would buy social networking pioneer MySpace.