SUNNYVALE, Calif. ( TheStreet) -- Yahoo ( YHOO) shares spiked on Wednesday following a media report that Microsoft ( MSFT) may attempt to buy the Internet giant. Yahoo's stock closed up $1.46, or 10.1%, at $15.92 after Reuters, citing sources close to the company, reported that Microsoft is considering a bid for the Sunnyvale, Calif-based firm.
One source, however, said that the software giant may seek a partner for its acquisition attempt, but did not name any parties. Sources also said that Yahoo! is readying a financial pitch for potential buyers, according to the report. "Microsoft does not comment on rumors or speculation," explained a Microsoft spokesperson in an email to TheStreet. Yahoo! also declined to comment. The Wall Street Journal's All Things Digital Web site, citing its own sources, reported that Microsoft would not be among the bidders for Yahoo! "in any significant manner." The two Silicon Valley heavyweights, however, do have some history. In 2008, Yahoo's board rejected a $47.5 billion bid from Microsoft to acquire the company, much to the chagrin of activist investor Carl Icahn. In 2009, though, the two companies inked a 10-year Internet search partnership . In other news, Microsoft announced on Wednesday that its Xbox 360 will begin playing on-demand television shows and other content. The Redmond, Wash.-based firm is partnering with a number of companies, including Comcast ( CMCSA), HBO, Bravo and Verizon ( VZ) to provide Video-on-Demand on the Xbox Live. Microsoft shares closed up 57 cents, or 2.25% at $25.91 on Wednesday. -- Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: firstname.lastname@example.org.
|M&A rumors are swirling around Microsoft and Yahoo!|