NEW YORK (TheStreet) -- Shares of Yahoo!  (YHOO) are down 1.51% to $30.70 in late-afternoon trading on Tuesday, even though Time Inc. (TIME)has expressed interest in acquiring the technology giant's core Internet business. 

The publisher of magazines such as Sports Illustrated, People and Time listened to a presentation by Citigroup bankers regarding a possible merger with Yahoo!, sources told Bloomberg. 

Other companies including Verizon (VZ), Comcast (CMCSA) and AT&T (T) have expressed interest in Yahoo!'s core business as well.

Although these bidders might make a higher offer than Time Inc. could, Time Inc. might be a tempting option since it could pursue a Reverse Morris Trust with Yahoo!, Bloomberg notes. A Reverse Morris Trust is a transaction in which one company merges with a spun-off subsidiary. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.

Yahoo!'s strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations are countered by weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: YHOO

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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