TechUser has a great article about possible reasons Microsoft would be interested in purchasing Yahoo’s paid-search business (click HERE for the back story). For those of you new to the subject, paid-search is where advertisers bid against each other to get better/more frequent placement of their ads next to search results (think Google AdWords). This is big business. Believe it or not, it’s what drives Google… search, Gmail, Google Docs, etc all revolve around their ad business.

The afore mentioned article puts forth a compelling argument that Microsoft is only interested in the infamous ‘361 patent held by Yahoo. This is the patent on the whole idea of paid-search. Apparently, Yahoo has been dening Microsoft a good licensing deal on the patent, so Microsoft is retaliating. From the article:

Microsoft is still chafing under Yahoo’s influence and is desperate for unfettered access to the ‘361 patent. It is quite possible that the size of the royalties Microsoft is paying to Yahoo are forcing Microsoft to neglect its paid search operations in order to minimize payments to Yahoo, and to minimize the size of an eventual settlement with Yahoo.

Microsoft is completely aware of the ludicrousness of its attempts to buy Yahoo’s paid-search assets and Microsoft’s earlier acquisition bid seems to have been an attempt to soften up Yahoo’s opposition to a paid-search asset acquisition.

The entire theory is interesting. Click HERE to read the full article.