Shares of leading Internet portal Yahoo, Inc. (Nasdaq: YHOO), shot up more than 15 percent in pre-market trading on Friday after a published report stated that software giant Microsoft Corp. (Nasdaq: MSFT) is seeking to renew formal acquisition talks.

The New York Post said Friday, citing unidentified sources, that the deal could value Yahoo! at about $50 billion.

The news comes after Microsoft acquisition talks in April with online display advertising firm DoubleClick failed to result in a deal. The company was instead bought out by Internet search leader Google Inc. (Nasdaq: GOOG) for $3.1 billion. In addition, Google renewed a search contract with AOL, an area where Microsoft also competes.

The Post said that Yahoo! had rejected a bid from Microsoft two months ago.

Microsoft's Internet sites and Yahoo's properties, would combine to reach 27 percent of the online advertising market compared to 65 percent of Google's ad market reach, the report stated.

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