According to the Wall Street Journal, Google is potentially interested in helping private equity firms buy a stake or all of Yahoo. The article says:

But at the same time, there are rumors of Microsoft also looking to buy Yahoo. Yes, these are the same types of rumors we had years ago, prior to Carol Bartz giving Yahoo away to Microsoft. But now, things may be different.

Yahoo’s co-founder is also saying that Yahoo is not for sale – a lot of these rumors may be true or may be just out there to generate interest in larger bids for Yahoo.

Greg Sterling’s take is that Yahoo is a pawn in all of this:

No one really can see Google being allowed to buy Yahoo but let’s see what happens.

Forum discussion at WebmasterWorld.