Engadget is reporting that there a rumor floating about that Yahoo is going to allegedly be offering their own line of consumer electronics. To me this makes no sense, just as Gateway failed in this, Yahoo might as well. Then again, this is only hearsay at this point, so we will have to wait for now.

Major scoopage (we think): No official confirmation on this, but a well-placed inside source tells us that Yahoo will be branching out in a big way soon with a line of consumer electronics which should be announced sometime within the next two weeks. The initial line up is supposedly a portable DVD player, two LCD televisions, and a home theater in a box system. Like most of these kinds of releases (assuming this is for real), they’re really just slapping their logo on products built by somebody else (in this case, it’s supposedly Diamond Electronics). This is either a really big deal or someone just went to a lot of trouble to try and dupe us—regardless, everything looked like it checked out, and it was too good to not pass along. Make sure you click to see pics and product descriptions.