Buffett isn't bidding alone, the report says, backing a group that includes Quicken Loans founder Dan Gilbert.
Buffett said in an early-May interview with CNBC that "something has to change there" when speaking about Yahoo, but didn't offer any indication that he is pursuing a bid for the company.
Buffett and Co. will be joining in a bidding war for Yahoo's content and search assets that includes a list of ten private equity firms and technology companies. The parent company of the Yellow Pages is considering a bid, alongside TPG who wants the Yahoo advertising technology.
Verizon is said to be the company to beat, front running as bidding entered its second round earlier this week. Verizon is looking to add Yahoo to its content and advertising arm that includes Aol.
Following years of stagnant growth, activist hedge fund Starboard pushed for a sale of Yahoo's core assets earlier this year -- and won. Starboard gained four board seats along the way.
Financial Times reports that some bidders in the first round were unhappy with the disorganization of the bidding process, indicating current CEO Marissa Mayer "was not very committed to selling the business."