Microsoft Takeover Bid Sends Yahoo Stock Soaring

Yahoo Inc. (YHOO) shares were up 60% in Friday's pre-market trading to $30.50 after Microsoft Corp. (MSFT) made an unsolicited $44.6-billion offer for the seminal Web portal. The cash and stock offer is worth $31 per share.

Yahoo has yet to respond to the offer, while Microsoft said the tie-up would create a "competitive alternative."

Microsoft shares were down about 5% to $30.85 in pre-market trading on Friday. While the NASDAQ 100 futures were also up 1%.

Google Inc. (GOOG), which would be the main rival to the Microsoft-Yahoo tag team, saw its stock fall 6% in pre-market trading following lower-than-expected quarterly earnings on Thursday.