Today's Outrage: Microsoft-Yahoo! Deal Proves Google's Power

(Updates with share reactions in third paragraph.)

NEW YORK ( TheStreet --Ultimately, the Microsoft ( MSFT)- Yahoo! ( YHOO) search partnership says more about the power of Google ( GOOG) than it does about MicroHoo.

The on-again, off-again courtship between Microsoft and Yahoo! could only be consummated because the two former juggernauts have been sidelined by Google in the all-important financial boondoggle known as Internet search.

In the markets, the news was treated as an indictment against Yahoo!, whose shares are down about 12% in recent trading while Microsoft stock ticked up a few cents. Google shares are down 1%.
Yahoo! and Microsoft Take On Google

Google rules with 65% of all online searches, while Microsoft and Yahoo! combined account for less than half of Google's reach, according to ComScore.

Maybe together they'll have better luck. Microsoft needed the Yahoo! audience to get its new anti-Google search engine "Bing" noticed. Yahoo! needed some kind of buzz to stay in the game. So now we'll see whether either of these almost has-beens can deliver a second act.

Frankly, I'm rooting for them. I still love my Google, but I'm getting a little tired of seeing "Powered by Google" all over the Internet. There is such a thing as too much of a good thing.

Google needs a little competition to keep it focused on customers and prevent arrogance from steering it astray. You only need to look at Microsoft and Yahoo! to know that I'm right about that.

Besides, we don't want all the world's information to be locked up in the Googleplex.

Information is power, after all.

Google's got enough of both. Sharing is good. Competition is good.

So good luck, MicroHoo.

Written by Glenn Hall in New York. Feedback can be sent to glenn.hall@thestreet.com

Glenn Hall is the New York-based editor in chief of TheStreet.com. Previously, he served as deputy editor and chief innovation officer at The Orange County Register and as a news manager at Bloomberg News in Frankfurt, Amsterdam and Washington, D.C. As a reporter, he covered business and financial markets, worked in both print and television in the U.S. and Europe, and conducted in-depth investigative coverage at The Journal-Gazette in Fort Wayne, Ind. His work also has been published in a variety of newspapers including The Wall Street Journal, The New York Times and International Herald Tribune. Hall received a bachelor's degree in journalism and political science from The Ohio State University and a certificate in project and program management from Boston University.

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