Yahoo! Names eBay's Thompson CEO

SUNNYVALE, Calif. ( TheStreet) -- Yahoo! ( YHOO) has appointed PayPal President Scott Thompson as the Internet giant's next CEO, ending its four-month search for a new chief.

In a statement released before market open on Monday, Yahoo! said that Thompson will assume his new role on Jan. 9, at which time acting CEO Tim Morse will resume his previous role as CFO.

"Scott brings to Yahoo! a proven record of building on a solid foundation of existing assets and resources to reignite innovation and drive growth, precisely the formula we need at Yahoo!," explained Roy Bostock , chairman of the Yahoo! board, in the statement. "His deep understanding of online businesses combined with his team building and operational capabilities will restore the energy, focus, and momentum necessary to grow the core business and deliver increased value for our shareholders."

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

Shares of Yahoo! dipped 11 cents, or 0.71%, to $16.17 before market open while eBay's stock was down $1.23, or 3.64%, to $30.11.

-- Written by James Rogers in New York

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