Shares of leading Internet portal Yahoo, Inc. (Nasdaq: YHOO), shot up more than 15 percent in pre-market trading on Friday after a published report stated that software giant Microsoft Corp. (Nasdaq: MSFT) is seeking to renew formal acquisition talks.
The New York Post said Friday, citing unidentified sources, that the deal could value Yahoo! at about $50 billion.
The news comes after Microsoft acquisition talks in April with online display advertising firm DoubleClick failed to result in a deal. The company was instead bought out by Internet search leader Google Inc. (Nasdaq: GOOG) for $3.1 billion. In addition, Google renewed a search contract with AOL, an area where Microsoft also competes.
The Post said that Yahoo! had rejected a bid from Microsoft two months ago.
Microsoftâ€™s Internet sites and Yahooâ€™s properties, would combine to reach 27 percent of the online advertising market compared to 65 percent of Googleâ€™s ad market reach, the report stated.