For the last two weeks, Microsoft has been in talks to buy private adware firm Claria, according to a report in the New York Times. Apparently, the offer price stands at $500 million but the talks were in peril because of fears within Microsoft about its image as "a corporate Big Brother, trying to track every mouse click on the web and profit from it." Others within the software giant believe they could bring legitimacy to adware by establishing privacy rules while benefiting from personalized advertising.

The move could indeed raise eyebrows - and not merely because of Claria's controversial past as Gator. It's likely that ears in addition to eyebrows would be perked up at Google and Yahoo as well, as Microsoft is most interested in Claria's recent customization efforts, behavioral marketing network, and targeting ability for online marketing.

Apparently, both chief executive Steven Ballmer and chairman Bill Gates have taken part in the debate. Neither Microsoft nor Claria is talking to the press.