NEW YORK (TheStreet) -- For over a year now, Yahoo! (YHOO) has been building a major presence in New York, buying up New York-based tech companies, even renting out a big part of the New York Times building.
I've been backing these moves, both editorially and with my own cash. My cash has done well but now my editorial side is beginning to wonder why.
That's because, rather than trying to create compelling, mobile, cloud-based software services, CEO Marissa Mayer seems to be "going native" in New York and trying to build a media empire. She has been raiding the rest of the Times' building for talent like David Pogue, and is now reportedly after former CBS anchor Katie Couric for a Web-based interview show.
For an old tech reporter like me, it's very exciting. But as a reporter who has studied business models for all his adult life, it's the dumbest thing I've ever heard.
The reason? Content doesn't scale like software. Nothing scales like software when it goes online.
I know it's fun to play dress-up for a Hollywood premiere. I know it's great to be interviewed for the TV. I certainly love my own job in journalism and wouldn't do anything else.
But the numbers don't add up the way they do in technology. Last year's total box office receipts came to $10.82 billion, according to Box Office Mojo. The final figures for 2013 will show little growth.
Contrast that with Google's (GOOG) $60 billion in 2012 revenue. Software scales best.