There was talk of monopoly in Silicon Valley Friday morning as news of Microsoft’s $45 billion offer for Yahoo spread at Internet speed via email, instant message and mobile phone. But the huge irony in Microsoft’s bid for Yahoo is seen by many here as just what is needed to fend off another monopolist in the making: Google. “We would prefer to see a healthy Microsoft and Yahoo,” says Geoff Yang, a venture capitalist with Redpoint Ventures and an early investor in Internet-based companies. “But I am starting to get worried about Google’s dominance, and in the absence of three healthy companies, I’ll take two. Competition is good for us, the industry and customers.”

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