Yahoo! Names Scott Thompson CEO
On January 9, 2012 Scott Thompson will assume the role of Chief Executive Officer according to the Wall Street Journal. Scott Thompson is the President of PayPal, a unit of EBay. Scott will be taking over for Tim Morse, CFO, who is the stand in CEO after the former CEO was fired.
In September Yahoo! fired CEO Carol Bartz who had filled the position of CEO for 2 and 1/2 years. Carol had failed to turn around the company and was losing grounds to Google and also to Facebook. After her failed attempts to gain ground against competitors she was let go according to LA Times. The companies stock price has not topped $20 in the past 3 years.
The last few years have been challenging to say the least for Yahoo! In 2008 the company's co-founder Jerry Yang stepped down after criticism of his handling of bids made to buy Yahoo! by Microsoft. Microsoft had made a $44 billion bid to buy out Yahoo! In the recent years the company has formed a partnership with Microsoft in hopes of gaining grounds on Google. Google has approximately 2/3 of the search market share.
With the leadership that Scott Thompson will bring and his respect in the internet industry it makes the prospects of a buyout by the likes of Microsoft unlikely. People expect him to lead the company to greater standing in the industry. Everybody is anxiously watching to see what will happen with the change in leadership. Many still question whether Yahoo! has what it takes to come back from years of trouble.
On the other hand many are speaking out on the issue and the opinions are mixed. Many of those that are speaking out about Scott and his take over of CEO have positive things to say. Stifel Nicolaus analyst Jordan Rohan: "Yahoo has been lacking a unified strategic vision for several years," Mr. Rohan noted. "We believe Scott Thompson may be able to bring that vision, as well as the know-how to build a healthy ecosystem around Yahoo's core set of assets."