Yahoo shares jump after Microsoft takeover touted

SHARES IN INTERNET ADVERTISING BROKER Yahoo jumped 10 per cent last night after rumours of a Microsoft takeover resurfaced.

Yahoo's stock price increased, according to the BBC, after it was suggested again that Microsoft is considering a takeover, again.

The company's name might not have the cachet it used to have back when its portal was a popular internet destination. Although it competes in the online advertising market it seems a little lost and could become more relevant should it firm up its relationship with Microsoft.

Yahoo has a current market value of £13bn, according to the BBC. Previously Microsoft had bid over twice as much for the firm.

This lower price tag is likely to make the company more appealing to Microsoft, as is the fact that the firm removed CEO Carol Bartz from her post last month. At that time rumours appeared that Yahoo could be sold and they are likely to continue until a deal is completed.

Although Chinese partner Alibaba has been mentioned as a potential buyer, a merger of Microsoft and Yahoo would perhaps be the most appealing to investors, as it would give the combined operation more weight in the search and advertising businesses that rival Google dominates.

Shares in Blackberry developer Research in Motion (RIM) also increased 12 per cent after rumours of a Vodafone bid for its business appeared. µ