TIMELINE - Microsoft's pursuit of Yahoo

(Reuters) - Microsoft said on Monday it is ready to resume talks to buy Yahoo, but not with the current leadership, in a boost for activist investor Carl Icahn's proxy fight to replace Yahoo's board of directors.

Shares of Yahoo jumped nearly 11 percent to $23.68.

The following is a timeline of key events in Microsoft's pursuit of Yahoo, stretching back more than two years, when the Web pioneer's financial results began weakening.

Early 2006 - Yahoo begins to report a string of weak quarterly results that have stretched on since then, reflecting competitive missteps by the company, market share gains by rival Google, changes in the online advertising landscape and weakening spending in some ad segments.

Late 2006/early 2007 - Microsoft and Yahoo begin preliminary talks on various partnerships, including a merger.

2007

February - Yahoo, under the leadership of previous Chief Executive Terry Semel, tells Microsoft it is not the right time to discuss a takeover, as the Yahoo board sees great potential in its new advertising technology and by making internal organizational changes.

June 12 - A strong minority of Yahoo shareholders challenges Yahoo's direction, as CEO Semel comes under fire. Nearly a third of votes cast at the company's annual shareholders' meeting oppose some of Yahoo's directors.

June 18 - Yahoo co-founder Jerry Yang takes over as chief executive as Semel steps aside. Semel remains Yahoo chairman.