US mobile networks AT&T and Verizon are set to go head-to-head in the third and final round of bidding for Yahoos core internet assets, as the once-powerful tech firm sells off its core business following its failed attempt at a turnaround.

According to Reuters, the Yahoo board has reviewed the second-round offers and is currently reaching out to bidders to notify them whether or not they have made it to the next round, with Verizon, AT&T and a consortium led by Quicken Loans founder Dan Gilbert and supported by Warren Buffett expected to be part of the final deliberations.

The auction for the core business assets is expected to conclude next month, following the elimination of second-round bidders largely comprised of private equity firms.

Verizon and AT&T are the largest and second largest mobile phone operators in the US, respectively, and are believed to seek control of Yahoos assets to make use of its advertising technology tools.

Verizon, which acquired AOL last year for $4.4bn (£3.1bn), is understood to have submitted a bid of around $3bn in the second round, a considerable drop from its first round bid after it was revealed that Yahoos assets had been overvalued. Acquiring Yahoo would strengthen the assets it picked up from AOL, while for AT&T, Yahoos technology would better enable it to compete with first-placed Verizon.

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