The Enemy Of My Enemy Is My Friend

Google is playing a strange game with Yahoo, but in the long run it makes sense, depending on conditions.

Google Inc. (GOOG) is considering providing financing for an acquisition of Yahoo! Inc. by another company or a group of bidders, according to a person who has been briefed on the matter.
The company may opt not to take part in any offer and hasn’t engaged in serious discussions with would-be partners, said the person, who asked not to be identified because the deliberations are private.

Yahoo is weighing strategic options after firing former Chief Executive Officer Carol Bartz, in part for her failure to keep pace with Google in the market for online advertising. Google, which has $42.6 billion in cash and short-term investments, is considering helping finance other bidders, rather than trying to acquire Yahoo outright, the person said.

Representatives of Sunnyvale, California-based Yahoo and Mountain View, California-based Google didn’t immediately respond to requests for comment outside regular business hours. The Wall Street Journal reported earlier today that Google is considering financing a bid by private equity firms for Yahoo. 

Helping a third party buy Yahoo! means they stay in the search engine game...and it takes pressure off Google and the growing antitrust sentiments against them without giving Microsoft and Bing a leg up.  Yeah, it's enlightened corporate self-interest with an eye on placating Congress, but it's a smart move that may pay off down the road.  How ethical it is is debatable, but it's not an overt measure at least.

I happen to believe it's a pretty solid move if that's Google's goal.