Microsoft-Yahoo Deal Rumors

The New York Post is reporting that Microsoft is pursuing a merger with Yahoo, and has requested formal talks to discuss a deal. These rumors have circulated before, but the market seems to be taking the report seriously. Shares of Yahoo soared 17 percent in early trading.

The implications of a Microsoft-Yahoo combination are huge, and any deal would reportedly be in the $50 billion range. Yahoo's data center network includes more than 20 facilities, and any combination with Microsoft's infrastructure would be a significant component of a joint strategy to take on Google, which makes no secret of its belief that its data centers provide a competitive advantage.

Is it for real, or just the rumor mill run rampant? Time will tell.