Google Taps Quattrone to Advise on Yahoo
Look who Google’s turned to for help.
Frank P. Quattrone is advising Eric E. Schmidt, Google’s chief executive, as the Internet giant figures out its next step in the takeover struggle between Yahoo and Microsoft, people briefed on the matter told DealBook.
Mr. Quattrone’s role — his first high-profile transaction since being cleared of obstruction of justice charges last year — arrives as the drama surrounding Yahoo reaches a new level of complexity. Google and Yahoo announced Wednesday afternoon that they are testing out an advertising partnership, one that if successful may be used by Yahoo to demand a higher bid from Microsoft.
Google has formally hired Mr. Quattrone’s new firm, the Qatalyst Group, people close to the company said. He has already been involved in a series of meetings and conference calls, these people said.
That Mr. Schmidt would call on Mr. Quattrone is no surprise. The two men have worked together for years, and Mr. Schmidt was even quoted in the press release announcing the creation of Qatalyst. “I look forward to working with him again and am very enthusiastic about Qatalyst’s prospects for success,” Mr. Schmidt said at the time.
Mr. Quattrone was also one of the first investment bankers ever to meet with Google when the company was still in its infancy in the late 1990’s.
Google is clearly weighing its options, especially after it emerged that Microsoft is in talks with the News Corporation about teaming up for a new bid. If it comes to pass, the pairing would involve combining Yahoo with Microsoft’s MSN and News Corp.’s MySpace.
Google has been actively involved in Yahoo’s discussions about a potential merger with Time Warner’s AOL.
By:Andrew Ross Sorkin and Michael J. de la Merced
NY Times; April 10, 2008, 4:17 pm
