NEW YORK (AP) – Speculation about a possible Microsoft-Yahoo tie-up met with skepticism Friday from analysts who believe services from the two companies have too much in common.

Yahoo shares surged nearly 10 per cent following published reports Friday that Microsoft Corp. is resuming its pursuit of Yahoo Inc. in an attempt to better compete with Web search and advertising leader Google Inc.

The New York Post reported that Microsoft has asked Yahoo to enter formal negotiations for an acquisition that could be worth $50 billion. Yahoo’s market capitalization was about $38 billion on Thursday.

Both companies declined comment on the reports, each of which cited unidentified people familiar with the situation.

Jeesh, I like Yahoo, I’d really rather not see it turn in to another of MS’s messes!

Source: Yahoo News

~LC