Yahoo is in talks to purchase a controlling interest in online video sharing portal Dailymotion, according to the Wall Street Journal.
The respected American newspaper cites "people familiar with the situation" as reporting that Yahoo is interested in acquiring as much as 75 per cent of the France Telecom-owned site.
Yahoo and France Telecom-Orange have so far declined to comment on the story.
"We are unable to confirm, deny or comment on speculation regarding potential talks between Yahoo and Orange at this time," Dailymotion MD Roland Hamilton said in a statement.
If a deal were to materialise, it would mark Marissa Mayer's first major move as Yahoo CEO. Mayer joined Yahoo from Google in July 2012.
Observers say that a move for Dailymotion would likely be intended to boost Yahoo's presence outside of the US. Mayer has previously said that the UK and Germany represent markets where the company needs to "get stronger."
"One of the challenges in Yahoo's business is that we are primarily domestic and we don't have enough of our business running it from an international basis," she said earlier in the year.
Dailymotion is value at around $300 million (£198m) and is the world's 12th-largest video website, according to recent data from research firm comScore. It is understood to be particularly popular in France and Turkey.