Yahoo! announced today that it is incorporating Facebook Connect into its properties to allow users of its features the opportunity to share them with their friends on Facebook. This is actually a smart move.

Yahoo! failed to capitalize on search and spent the better part of the last 10 years smelling Google’s fumes. Earlier this year they announced a partnership with Microsoft that will allow Bing to run its search while Yahoo! runs the advertising department. Or something like that.

Partnering with the largest social network online could possibly put Yahoo! back in the game. Not the search game, but THE game. The big game. Traffic.

Of course, Yahoo! has never really suffered in the traffic department. I mean, lots of people go there to play Canasta. But what else do they do? Ask questions and answer them (Yahoo! Answers). Now just imagine all of Yahoo!s amenities being shared on Facebook. I think they make a good point when they say:

The content that consumers share with Facebook friends will then create a loop that drives visitors back to Yahoo!.

They may even pick up a few more new users. What do you think?