Yahoo plans makeover with elements of social network

This isn't Yahoo's first attempt to become a bigger player in the Internet's social scene. The company launched a social network called "360" in 2005, but recently closed the service down because it never caught on. Yahoo also offered to buy Facebook for $1 billion in 2006 only to be rebuffed.

Privately held Facebook last year sold a 1.6 percent stake to Microsoft for $240 million.

Now Microsoft wants to buy Yahoo in an effort to chip away at Google's huge lead in Internet search and advertising. If Yahoo's board doesn't agree to a sale by Saturday, Microsoft has threatened to try to replace the 10 directors in an attempt to complete the deal.