Looks like the ultimate poison pill...
The possible partnership with Google would be part of an a bid by Yahoo to forge a three-way deal where Yahoo would merge with Time Warner Inc AOL in return for Time Warner taking a stake in Yahoo, sources had told Reuters last week.
... but probably not (from later in the article):
The Journal also reported a tie-up with Google would not necessarily derail an eventual deal to merge with Microsoft. Yahoo could simply pull out of the Google deal if Microsoft bought it, sources told the paper.