Rumors than the Washington-based technology giant may change its course yet again and take over the struggling South Bay firm sent Yahoo shares up 10 percent on Wednesday, according to the San Jose Mercury News.
Nearly three years ago, Yahoo spurned a takeover bid from Microsoft, since when its stock has suffered. Takeover speculation has swirled again ever since Yahoo fired CEO Carol Bartz five weeks ago, according to the newspaper. On Wednesday, a news reported cited an unnamed source who said that there was disagreement on Microsoft's board on exactly how to proceed.
Yahoo's shares gained $1.46 on Wedneday and closed at $15.94.
With 800 million users, Yahoo is a well-known brand, but the two companies have less incentive to merge now that they're bound in an Internet search partnership. Microsoft is also struggling with computer sales, making a risky buyout less likely.