Yahoo Stock up 3 Percent as Microsoft, Google Contemplate Stake

Yahoo's stock rose around 3 percent on Monday, following reports that Microsoft and Google are contemplating financing roles for the private equity firms eyeing a buyout of the troubled tech firm.

Microsoft and Google are well-positioned for such deals, with large amounts of cash - more, in fact, than many banks that would traditionally finance such a deal, as the Wall Street Journal noted.

Microsoft, which runs the search engine Bing, and Google would also have interest in having a say in Yahoo's direction. Microsoft's Bing already has a search engine partnership, in which Bing searches and Yahoo sells the ads, an arrangement that could be jeapordized if Yahoo was sold to another entity.

Yahoo has been in turmoil in recent months, with former CEO Carol Bartz ousted, and later resigning from the board of directors. Tim Morse is interim CEO.

Yahoo reported third quarter earnings of 21 centers per share, beating analysts' expectations of 17 cents per share. Net revenue was $1.07 billion, consistent with forecasts, but the sale of display ads was flat in the third quarter, after growth in previous quarters.

Shares of Yahoo were trading around $16.71 as the market ended the day.