The stock leapt as much as 17 percent to an intraday high of $30 before settling back. It was up 8.5 percent at $27.88 in afternoon trade on the Nasdaq. Microsoft shares were up slightly.
The two discussed Apple Inc's (NASDAQ:AAPL) dominance in mobile phones and considered several options to counteract that, including Microsoft acquiring Adobe, the newspaper said, citing employees and consultants involved in the discussions.
Adobe declined comment. Microsoft did not immediately respond to a request for comment.