Yahoo Inc. has named Scott Thompson, president of eBay Inc.’s PayPal division, as its new CEO, the fourth one in less than five years for the struggling Internet company.
Yahoo, which announced its choice Wednesday, has been without a permanent CEO since early September. It fired Carol Bartz after losing patience with her attempts to turn around the company during her 2 ½ years on the job. Tim Morse, Yahoo’s chief financial officer, has been interim CEO since Bartz’s ouster.
Thompson has served as president of PayPal, eBay’s online payment service, since January 2008. He previously served as PayPal’s senior vice president and chief technology officer.
Yahoo said Thompson’s new job starts on Jan. 9. Morse will return to his CFO post.
Yahoo Chairman Roy Bostock said Thompson’s track record of building on existing resources “to reignite innovation and drive growth” is “precisely the formula we need at Yahoo.”
It will be a big task. Yahoo, which is based in Sunnyvale, Calif., has been losing ground in the fast-growing Internet advertising market to Google Inc. and Facebook Inc. for years. Mainly for this reason, its stock price has not topped $20 for the past three years.
Yahoo’s board has been reviewing a possible sale of all or part of the company since Bartz’s ouster last fall. There are several potential suitors, including China’s Alibaba Group, which may partner with private equity firms in a joint bid. Wednesday’s announcement signals that Yahoo is not looking to sell the entire company.
Bartz, too, was hired to help turn Yahoo around but she had no experience in Internet advertising — Yahoo’s main revenue source. This immediately raised doubts about her qualifications.
Thompson, who was PayPal’s chief technology officer before becoming president, is a technologist, with no skills in restructuring or media, said BGC Partners analyst Colin Gillis.
“Payments and ads are not the same thing,” he said.
But the analyst added that Yahoo could have done worse, and Thompson has had “a good run” at PayPal.
“He’s certainly going to have an opportunity to prove himself,” he said, adding that it “remains to be seen how desirable this job was.
“Whoever steps in this role is not going to have an easy time,” Gillis said.
Yahoo’s stock fell 38 cents, or 2.3 percent, to $15.91 in morning trading following the announcement.
Shares of eBay, meanwhile, dropped $1.21, or 3.9 percent, to $30.13. Gillis, though, said Thompson’s departure won’t hurt eBay.
“PayPal is much bigger than any one individual,” he said. “Some new blood may even help reinvigorate it.”
Disney Pledges $15 million In L.A. Fire Aid As More Celebs Learn They’ve Lost Their Homes
The Pacific Palisades wildfires torched the home of "This Is Us" star Milo Ventimiglia, perhaps most poignantly destroying the father-to-be's newly installed crib.
CBS cameras caught the actor walking through his charred house for the first time, standing in what was once his kitchen and looking at a neighborhood in ruin. "Your heart just breaks."
He and his pregnant wife, Jarah Mariano, evacuated Tuesday with their dog and they watched on security cameras as the flames ripped through the house, destroying everything, including a new crib.
"There's a kind of shock moment where you're going, 'Oh, this is real. This is happening.' What good is it to continue watching?' And then at a certain point we just turned it off, like 'What good is it to continue watching?'"
Firefighters sought to make gains Friday during a respite in the heavy winds that fanned the flames as numerous groups pledged aid to help victims and rebuild, including a $15 million donation pledge from the Walt Disney Co.
More stars learn their homes are gone
While seeing the remains of his home, Ventimiglia was struck by a connection to his "This Is Us" character, Jack Pearson, who died after inhaling smoke in a house fire. "It's not lost on me life imitating art."
Mandy Moore, who played Ventimiglia's wife on "This Is Us," nearly lost her home in the Eaton fire, which scorched large areas of the Altadena neighborhood. She said Thursday that part of her house is standing but is unlivable, and her husband lost his music studio and all his instruments.
Mel Gibson's home is "completely gone," his publicist Alan Nierob confirmed Friday. The Oscar winner revealed the loss of his home earlier Friday while appearing on Joe Rogan's... Read More