Everyone is buzzing about a published report that appeared in today’s New York Times regarding Microsoft possibly acquiring Claria. The story claims the two parties have been in talks for the last two weeks (initiated by Claria) and that a firm offer from Microsoft for $500 million is on the table.

There’s been no shortage of opinions on the validity of this story or predictions on what will happen if the deal goes through.

Some people that i talked to today say the biggest stumbling block is that many Microsoft executives are worried that buying a company so closely associated with controversial ad-delivering practices will perpetuate Microsoft’s image as a corporate Big Brother. That echoed sentiments expressed in The Times piece.

Claria, previously known as Gator, has already changed its name because of its notorious reputation - as well as numerous lawsuits – regarding the way its software tracks user habits and delivers pop-up ads.

Many industry watchers and consumers don’t think this acquisition is a great move for Microsoft. Most think Microsoft is making further attempts to track every mouse click on the Web and profit from it.

Neither Microsoft nor Claria executives are commenting on whether or not any negotiations are underway.

Most folks that Italked to didn’t want their names used. However, the general consensus was that there are several potential conflicts of interest here. Many are predicting that Microsoft will attempt to bring legitimacy to the adware space by establishing privacy rules, all the while benefiting from personalized advertising.

But Ben Edelman, a leading expert on spyware and adware, doubts the deal will even go through - never mind do anything to help polish the tarnished image of adware.

“If this deal goes through, which I consider doubtful, I don’t know that it would legitimize adware. Edelman says. “It might have exactly the opposite effect – causing further uproar and backlash against adware.”

Edelman also sees conflict on other levels. In an email to Revenue Magazine, Edelman states that he sees two distinct problems if Microsoft bought Claria.

“That Claria and kin harm the PCs of Windows users, damaging the value of Windows and making Mac, Linux, etc. relatively more desirable - to Microsoft’s detriment. And, that acquiring Claria would gut MS’s anti-spyware business. Could MS credibly continue to detect and remove (say) 180, if MS was the new owner of Claria?”

However, if the deal happens, Edelman says he would see Microsoft focusing on Claria’s BehaviorLink banner ads, which track the web use habits of 40 million users, “not Claria’s existing pop-up business.”

He notes, “These new banners are quite different from typical adware pop-ups. In particular, the adware pop-ups cover sites without those sites’ permission. But the banner ads would only appear within sites that agree to run them and those sites would receive payment for running them.”

More of Edelman’s thoughts on this topic can be read on his site.

Still others claim that recent moves by rivals Google and Yahoo! have prompted Microsoft to seek out more technology in the area of customization, behavioral marketing and targeted online marketing.

I’ll keep updating this story, so send along your opinion on the impact this deal could have on the affiliate and performance marketing space.