This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Scott Thompson Makes Sense for Yahoo!

Updated with confirmation from Yahoo! that Scott Thompson has been named CEO.

SUNNYVALE, Calif. ( TheStreet) -- Yahoo!'s (YHOO - Get Report) appointment of PayPal President Scott Thompson is a smart move.

Thompson's name surfaced unexpectedly this week in a report by the AllThingsD Web site, which cited unnamed sources.

Thompson's appointment makes good sense at a tough time for the Internet giant, which confirmed the appointment shortly before the stock market open.

Thompson has an impressive track record at PayPal, which now accounts for around 50% of eBay's (EBAY - Get Report) overall revenue. PayPal, which posted its first billion-dollar quarter last year, is expected to contribute $7 billion to eBay's revenue by 2013.

The relatively low profile that Thompson has kept will also work in his favor, particularly when compared to his flamboyant yet often polarizing predecessor, Carol Bartz, who was ousted last year.

PayPal President Scott Thompson has been appointed CEO of Yahoo!

Thompson's technology credentials are also strong. Prior to becoming PayPal's president, he served as the company's vice president and chief technology officer, where he oversaw IT and product development. Earlier in his career, the executive worked for Inovant, a Visa (VISA) subsidiary set up to oversee the company's global technology organization, and was also CIO for Barclays Global Advisers.

Yahoo! needed to quickly appoint a CEO to forge the company's new strategic direction, amid mounting uncertainty about its future. Reuters, for example, reported on Thursday that Chinese e-commerce giant Alibaba has hired a Washington lobbying firm, a sign that it could be willing to make a bid for all of Yahoo! if talks to wind down their Asian partnership fail.

Shares of Yahoo! were down 39 cents, or 2.42%, to $15.89 in early afternoon trading on Wednesday.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
EBAY $57.13 -0.95%
YHOO $44.13 -0.69%
AAPL $124.25 -0.14%
FB $81.66 -0.67%
GOOG $542.56 -0.99%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs