Buffett had said in a CNBC interviewthat Yahoo's business had deteriorated significantly and that "something has to change there."
The deal would involve Pfizer paying with 11.3 of its shares for each Allergan share.
Google, which is working on projects including self-driving cars and robots, has become increasingly focused on artificial intelligence in recent years.
At least five bidders have emerged for the five-year-old video service with four million users.