Google May Fund The Third Party To Acquire Yahoo

Google is considering providing financial assistance to the third-party company or consortia to help with the acquisition of Yahoo

. This is to indirectly enhance the competitiveness of Yahoo and change Google's image of monopoly, thereby reducing Google's current regulatory pressure.

It is said that Google still may not be involved in the bid for Yahoo. Google did not engage in substantive negotiations with potential partners. Before the dismissal of the former CEO Carol Bartz, Yahoo has begun to evaluate various strategic options.

The analysts said, by providing funding, Google can continue to make Yahoo a competitor, thereby enhancing the competitiveness of the Internet industry. Google is currently facing the antitrust investigations of the regulatory departments of many countries' government.

The analysts said: "If the competition is weakened, then the regulatory approach may be tougher. The outside views in the monopoly position of Google will also have more evidence." Google currently holds $ 42.6 billion of cash and short-term investments. According to sources, Google is considering funding other bidders, rather than itself to acquire Yahoo.

The U.S. Federal Trade Commission announced in the June of this year that it is evaluating Google's business practices, including Google's search services and advertising business. The EU and the U.S. government have begun investigation on Google's position in search and advertising market. The analyst pointed out that Microsoft in 1997 invested $ 150 million to its rival Apple to maintain the competitiveness of the computer market. Google's investment to Yahoo may be similar.

However, if Google participates in the bidding for Yahoo, it may lead to regulatory review. In 2008, Google had hoped to cooperate with Yahoo on the advertising. But under the opposition of the regulatory authorities, the two companies ultimately failed to achieve this cooperation.

Google and Yahoo did not comment on this news. It is reported that Google is considering funding private equity firm to jointly acquire Yahoo. There is a number of private equity firms are considering the acquisition of Yahoo. Yahoo's market capitalization is about $ 20.35 billion. According to another source, Microsoft is also considering providing funding for the private equity firms.

Ali Baba group had expressed interest in buying Yahoo. This will help Ali Baba to recover the 43% of the shares. In addition, Alibaba Group has contacted with Silver Lake and DST to discuss joint bid for Yahoo. Another consortium that is interested in Yahoo is the executive of Providence Equity Partners Peter Chernin.

by: Amanda Xia

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