Mike Snider

USA TODAY

Yahoo is prepping what could be the last earnings release for the company as we know it.

The Sunnyvale, Calif.-based Net media company reports second-quarter earnings after the markets close on Monday. That same day, Yahoo is expected to receive the final bids from those interested in buying its core business, which includes advertising, search and content such as Yahoo Finance, Yahoo Sports and Yahoo Mail.

Yahoo (YHOO) is expected to announce the results of the sale before the end of the month. If one or more bids is deemed acceptable, the company could sell its core business, patents, real estate and other assets. That would leave only its 15% stake in Chinese e-commerce giant Alibaba, which is worth about $31 billion, and perhaps its 36% stake in Yahoo Japan, worth about $8 billion.

Among the reported bidders for Yahoo are AT&T; Verizon; a consortium that includes Warren Buffett's firm Berkshire Hathaway and Dan Gilbert, founder of Quicken Loans and owner of the NBA's Cleveland Cavaliers; and private investment firm TPG.

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Although some investors are concerned that Yahoo might spurn offers, BGC Financial technology research director and analyst Colin Gillis expects the company "to end the process and complete a sale," he said in a note to investors Friday. "Yahoo is over in our eyes."

Despite Monday's earnings report, "the focus is going to be on the ... sale," said Gillis, who estimates that bids could surpass $6 billion, but expects Yahoo would accept any offer of $5 billion or so. "Anything higher than $7 billion we consider a positive development," he said.

Gillis maintained a Buy rating on Yahoo shares but increased his firm's target price to $46 from $35, as Alibaba (BABA) shares have risen in value. Yahoo shares closed Friday at $37.72, down 0.6%, but up more than 3% for the last three months, parallel to Alibaba shares, which closed at $81.25, down 0.6% but also up nearly 3% over the last three months.

He expects Yahoo will likely surpass Wall Street expectations of earnings and revenue for the quarter ending June 31. When it comes to Yahoo's earnings report, here's what to watch:

EARNINGS FORECAST: Analysts expect Yahoo to report earnings per share of 10 cents, down 48% from 16 cents one year ago, according to analysts polled by S&P Global Market Intelligence.

REVENUE FORECAST: Revenue minus the cost of traffic acquisition of $836.8 million is expected. That's down about 20% from the same period a year ago and falls within Yahoo's Q2 guidance of $810 million to $850 million.

SALE UPDATE: During the earnings call Monday afternoon, Yahoo CEO Marissa Mayer could comment on the sale, perhaps signaling when the process will come to a close.

The company's board began the sale process four months ago after abandoning a spin-off of the Alibaba stake over concern about transaction taxes. When activists including Starboard Value ratcheted up the pressure, they agreed to "strategic alternatives" that included a possible sale.

Adding to the likelihood that Yahoo will go through with a sale, Gillis says, is the involvement of four new independent board directors who joined in April as a settlement to avoid a proxy battle. Among those added to the board was Jeff Smith, CEO of Starboard Value, an activist investor fund that first pushed Yahoo to spin-off its Alibaba stake, then to sell the core business as a way to separate the company and its valuable Alibaba shares.

At Yahoo's annual shareholder meeting two weeks ago, Mayer said that had been "very heartened by the level of interest in Yahoo. It validates our business progress as well as our achievements to date."

SunTrust Robinson Humphrey Internet equity analyst Robert Peck also expects a sale to happen, but he downgraded Yahoo to Neutral and lowered his target to $42 from $44 based on the deal's complexity. Among the uncertainties, he noted possible payouts a buyer could owe current Yahoo partners such as Mozilla, which may be due more than $1 billion if it is unhappy with the new owner of Yahoo's core business -- a deal reported last week by tech news site Recode.

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