In mid-morning trading, shares had increased 7.9 percent to $3.85 after hitting $3.90. Year-to-date through Friday, the stock has been up 51 percent.
The potential acquisition comes as Wunderlich Securities Inc. analyst Blake Harper wrote in a Monday research report that Yahoo! Inc. (NASDAQ:YHOO) could consider a Zynga purchase as Chief Executive Officer Marissa Mayer looks to acquisitions to increase the company's portal's mobile and social capacities.
Zynga Inc (NASDAQ:ZNGA) currently has a $3 million market value and it could be an attractive option if Mayer is interested in deals valued at greater than $1 billion, wrote Harper. He also suggested that Yahoo may also look at food- review sites including Yelp Inc (NYSE:YELP), OpenTable Inc (NASDAQ:OPEN), or Millennial Media, Inc. (NYSE:MM), which includes mobile advertising.
The above-mentioned companies have not commented on the research report.
Just last week, Jackie Reses, Yahoo's Human Resources/Mergers and Acquisition chief said that the company was pursuing two "significant" acquisitions to go along with its six small "acqui-hires," reported Kara Swisher from AllThings D. So far Yahoo's acquisitions under Mayer's rein have been smaller but biggest transactions have also been considered.
Swisher further noted that Yahoo! Inc. (NASDAQ:YHOO) has been looking at different acquisitions across broad categories including advertising tech, mobile monetization and “daily delight”--allegedly a phrase used by Mayer a lot.
In addition, Swisher tossed out Pinterest, the online scrapbook, as a possible target. It was recently valued at $2.5 billion after a new round of funding. Mayer has also appeared interested in Tumblr--also during her time at Google--and she also likes the location app Foursquare.
As for Mayer's job performance, the company appears happy with it to date. Yahoo! Inc. (NASDAQ:YHOO) recently awarded her a $1.12 million bonus and restricted stock worth $13.3 million from just five and a half-months in the top spot, according to an SEC filing on Wednesday. In 2013, Mayer, who joined the Internet giant in July 2012, will receive a $1 million base salary; this is the same as 2012's salary but she will receive a cash bonus of up to $2 million in 2013.