The technology giant is in talks with several private equity firms for a piece of the troubled rival Yahoo. Google is exploring the possibility of lending financial support to private equity firms interested in buying Yahoo Inc's core business, according to a report by The Wall Street Journal.
Citing an unidentified source close to the situation, the paper reported that Google and prospective partners have held early-stage discussions, but haven't put together a formal proposal.
The source added that Google might end up not pursuing a bid. It is unclear which private-equity firms the internet search company has talked to. Google representatives were unavailable to comment on the matter.
Any involvement by Google in a Yahoo acquisition is likely to draw antitrust scrutiny from regulators, because of both companies' shares in the Internet search business.
Google is primarily interested in what they could reap from teaming up with Yahoo, which is selling some advertising across Yahoo's website.
Microsoft is another player that has shown interest in providing financial assistance to a private equity firm in a bid for a part of Yahoo.
Yahoo has been in trouble since the sacking of its former CEO Carol Bartz earlier in September this year. The company is weighing strategic options with the help of the investment banking firm Allen & Co and has reportedly hired the executive search firm Heidrick & Struggles in search for a new CEO.
Silver Lake Partners, Providence Equity Partners, Bain Capital, Hellman & Friedman, Blackstone Group, and KKR are among the several private equity firms that are said to be considering buyout offers for Yahoo.
