Microsoft rumoured to make takeover bid for Yahoo

Yahoo's share price on the Nasdaq has climbed by ten per cent on rumours that Microsoft is mulling over a second takeover attempt for the search engine giant, wireless communication device users may wish to know.

Microsoft bid for the firm in 2008 and has reportedly joined a list of companies hoping to acquire the brand.

Alibaba, China's giant internet company, has already confirmed that it might buy Yahoo.

Currently, Yahoo's market value is $20 billion (£13 billion). Microsoft's previous bid for the company was worth around $45 billion.

Speaking to Reuters, Sid Parakh, analyst at fund firm McAdams Wright Ragen, said: "There are many reasons why this thing probably makes sense.

"If you strip out the variety of assets Yahoo owns, you are pretty much paying nothing for the core business."

News of the proposed takeover saw Microsoft shares end the day's trading 2.2 per cent higher than at the opening bell.