Yahoo, Microsoft: Morning Tech Bytes

Investors' reaction to Yahoo's quarterly earnings report leads the morning's tech news.
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NEW YORK (TheStreet) -- Investors reacted positively to Yahoo!'s (YHOO) Tuesday earnings announcement, sending the stock up slightly Wednesday in pre-market trading.

Yahoo! said Tuesday its third-quarter earnings rose

despite seeing flat sales. Yahoo! posted earnings of 29 cents a share, which included some gains related to the selling of companies like


. Without the boost, EPS came in at 17 cents, above the Wall Street consensus estimates calling for 15 cents.

During the earnings call, CEO Carol Bartz declined to comment on rumors that



and a group of private equity firms were looking at a buyout of Yahoo!

Yahoo! stock was up 1.36% in premarket trading.


(MSFT) - Get Report

announced Tuesday that it would begin offering a new

cloud-based Office product

, called Office 365. Microsoft said the product would "bring together Microsoft Office, SharePoint Online, Exchange Online and Lync Online" into a single product available online.

Microsoft also announced the departure of chief software architect

Ray Ozzie on Monday


Microsoft shares were down 0.4% in premarket trading to $25.21.


(INTC) - Get Report

plans to spend $6 billion to $8 billion to upgrade its existing manufacturing plans in the U.S., the company announced Wednesday. Intel will hire up to 1,000 new employees as part of the efforts.

Intel stock was up 0.42% in premarket trading to $19.29.

Online daily deal company


announced yesterday that it acquired social adventure company

Urban Escapes

in an attempt to overtake popular competitor


. The acquisition will allow LivingSocial, which allows users to find discounts on restaurants, shops and services, to tap into Urban Escapes' database of lifestyle activities such as yoga hikes and brewery tours.

LivingSocial expects to generate $100 million in revenue this year, the company said.

UK-based iPhone developer


, the creator of the Angry Birds games, could be acquired soon by a larger gaming company,


reported Wednesday morning. Potential acquirers include Microsoft's game unit, French video game developer


, Japanese game company



Activision Blizzard

. The purchase price could range from $80 million to $200 million, the story said.

Rumors about Chillingo come on the heels of DeNA's acquisition of mobile gaming company


last week.

--Written by Olivia Oran in New York.

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