The company, which reported earnings five days earlier than expected, posts a dismal first quarter due to the continued crumbling of the PC market.
Texas Instruments and National Semiconductor boards of directors have already approved the all-cash deal, which makes TI's sales force "10 times larger."
Yahoo's stock rises nearly 5 percent in morning trading following remarks by Microsoft's CEO on whether he might talk search deal someday with Yahoo's new CEO.
Windows 7 is slated for a release this holiday season. Here's a look at how the operating system's release is set to impact Microsoft's financial performance.