The man Google calls in a bind

Frank Quattrone, founder of the Qatalyst Group and one of the first i-bankers to assess Google in the '90s, has been enlisted as advisor to CEO Eric Schmidt. His role will be to help spring-load a strategy against the escalating drama between Yahoo and Microsoft, reports The New York Times.

Google recently formed a tentative agreement to serve ads on Yahoo's search results. Shortly thereafter, news broke that Yahoo may absorb AOL, while Microsoft allies with News Corp. to consider raising its bid.

The Qatalyst Group is a merchant banking firm. Qatalyst Partners, a subsidiary of the Group, provides corporate finance advice and M&A counseling to tech companies.

While a mash-up of online powerhouses seems like a threat to Google, some argue it may still come out a winner in the near term. "If Yahoo ultimately pairs with AOL, it will strengthen Google's share of the search market" regardless of whether Microsoft buys the company, Research Recap optimistically proclaimed.