Yahoo: content is not king

Update on Friday:  New York Post reports this morning the Google guys set the $3 billion price.  The Post reported, "'And I said, well you still have the same business you had two weeks ago, right? Which adds up to nothing,' Semel said. 'So obviously we couldn't and didn't buy the company.'"  Full story.

Terry Semel spoke Thursday at the Newhouse School of Communication.  The chairman and SEO said great media companies have great content, but "Content alone will fail.  Content and distribution will fail.  You have to have technology."  In Jeff Jarvis' blogged account, Semel said technology makes content more valuable.  For instance, what Flickr does with photos.

"Our fundamental business is selling advertising," Semel said.  "We license content from around the world and we sell advertising."  Jarvis says this makes Yahoo "the last old media company." 

He also quotes Semel saying he offered Google's founders $3 billion for the company, "and they didn't sell." 

Here's video of Semel and Auletta.