Yahoo could pay $300 million in the deal for News Distribution Network, according to unnamed sources cited by the Journal.
A Yahoo spokeswoman declined comment. And NDN did not immediately respond to requests for comment.
Video is one of the pillars of Yahoo CEO Marissa Mayer's strategy to boost the company's growth.
It could be Yahoo's second largest acquisition under Mayer, the report added. Last year, Yahoo bought Tumblr for $1.1 billion.
In early March, Yahoo announced it had added Vizify to the long list of startups it had bought since former Google executive Marissa Mayer took the helm less than two years ago.
The company did not disclose how much it paid for Vizify, which specializes in letting people turn their social media data into videos, infograpics or other visual presentations.
"We have found in Vizify a company that shares our passion for visualization technology and the user experience," Yahoo said.
Founded in 2011, Vizify is based in Portland, Oregon. Its five-member team will join Yahoo's media product group in San Francisco.
"As for what's next, we can't talk specifics just yet, but we're excited to bring a more visual approach to data at Yahoo," the Vizify team said in a post on the company's website.
"We have a lot more up our sleeves and can't wait to get started."
Sunnyvale, California-based Yahoo has bought more than two dozen startups as Mayer tries to pump new life into the aging Internet pioneer eclipsed by Silicon Valley neighbour Google.
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