Report: Microsoft weighing Yahoo takeover

Report: Microsoft weighing Yahoo takeover
Software giant has renewed deal talks with Internet advertising company after being beaten out by Google on the deal front, according to published reports.
May 4 2007: 8:22 AM EDT


NEW YORK (CNNMoney.com) -- Shares of Yahoo soared in pre-market trading Friday after published reports suggested that Microsoft is pushing the Internet bellwhether to enter merger negotiations.

In a story first reported by the New York Post, and then reported by the Wall Street Journal on its Web site Friday, Microsoft (Charts, Fortune 500) is hoping that a combination Yahoo (Charts, Fortune 500) could help it catch up in the growing segment of online advertising and make up for it being outbid by rival Google (Charts, Fortune 500) for other companies in the space.

More after the jump.