Yahoo has selected PayPal president Scott Thompson to be its next chief executive officer. Thompson will be given the task to completely revise its online advertising business model. It will be official as of Jan. 9.
In September, Yahoo fired CEO Carol Bartz after failing to generate an increase in revenues and allowing its chief rivals, Google and Facebook, to pass them by. The digital media company appointed Tim Morse to be its interim CEO.
According to a news release, Yahoo selected PayPal president Scott Thompson to be its CEO as of Jan. 9. He has also been appointed to the company’s Board of Directors. Morse will go back to his position of chief financial officer and serve in the Board.
Thompson will be given the difficult job of turning around the company’s online advertising business and work with the board to establish different approaches for the company--none of his predecessors accomplished this task.
“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!,” said chairman of the Yahoo Board, Roy Bostock.
“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. The search committee and the entire Board concluded that he is the right leader to return the core business to a path of robust growth and industry-leading innovation.”
Meanwhile, Thompson referred to Yahoo as an “industry icon” and said that he is excited in helping Yahoo enter the “next era of success.”
Thompson has a successful track record. According to PC World, during his time as president at PayPal, he was able to grow its annual revenues from $1.8 billion to more than $4 billion.
Yahoo (YHOO) shares fell two percent in the early morning trading session.