Yahoo! (YHOO - Cramer's Take - Stockpickr - Rating) surged 14% early Friday on news reports that a deal with Microsoft (MSFT - Cramer's Take - Stockpickr - Rating) may be in the offing.
The New York Post says Microsoft asked the Sunnyvale, Calif.-based Net giant to enter formal talks. Citing Wall Street sources, the Post put a $50 billion price tag on the deal.
The Post said Microsoft has been driven to the talks by its failure to buy ad server DoubleClick, which went to Google (GOOG - Cramer's Take - Stockpickr - Rating).
Shares of Yahoo! rose $4.08 early Friday to $32.26.