Struggling web company Yahoo has put 3,000 of its patents up for an auction. The company expects to generate over $1 billion in proceeds from the sale. Yahoo has hired boutique investment bank Black Stone IP LLC for this purpose. The bank specializes in patent sales.

According to the Wall Street Journal, the company has sent letters to potential patent buyers. Some of the patents date back to the inception of the company. The deadline for bids has apparently been set for sometime in mid-June. Earlier this year, Yahoo announced its intention to sell some of its patents. The company had projected the proceeds to be in the range of $1 billion to $3 billion.

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The sale of patents has been confirmed by a Yahoo spokeswoman. A statement from the company said, "This represents a unique opportunity for companies operating in the internet industry to acquire some of the most pioneering and foundational patents related to web search and advertising."

The prospects of reviving the fortunes of Yahoo is growing slimmer. Verizon Communications, the leading bidder for the company's core business, is expected to seal its bid at $3 billion. The bid is lower than previous estimates which were in the range of $4 billion to $8 billion. The negative trend in potential bids is a cause of worry for Yahoo stakeholders. Yahoo is expected to offer 500 US patents and more than 600 US pending applications as part of its core business.

TagsYahoo, Verizon Communications