Yahoo! Patents Word "Tag"

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Actually they didn't, but it is a good title nonetheless.

There are rumors circulating that Yahoo! is interested in buying Digg for $30 million. Kevin Rose, a Digg founder, refuted the claim, but of course you would expect him to do that right up until a deal is done. Kevin Burton announced the rumor:

I've now heard from two sources close to Yahoo which tell me that Yahoo is going to be buying Digg for nearly $30M. I haven't yet heard from anyone working for Yahoo that this is 100% (they obviously had 'no comment') but I'd be surprised if we didn't hear an announcement by early next week.

Many sites have been using various tagging technique to create hundreds or thousands of pathways to topical internal site searches. A while ago search engines seemed to hate anything that tried to get search results indexed. Why are tagging sites (which are often thin on content...being link lists with optional me too comments) not only loved by search engines, but also a hot commodity worth buying?

When Yahoo! buys tag sites do they ever hope to building revenue streams? Or are they just trying to make Yahoo! popular within the Web2.0 crowd?