Yahoo Finds Its CEO: Scott Thompson, Former PayPal Prez

Four-month search ends with a seasoned tech exec whose job may be to whip Yahoo into shape for a sale.

scottthompson-0061After a four-month search, Yahoo has finally filled the corner office. Its choice, former PayPal president Scott Thompson, brings a pedigree of senior executive roles in the financial and technology industries.

Yahoo credits Thompson with doubling PayPal’s active user base from 50 million to 104 million. Prior to that job, he held top management jobs with Visa subsidiary Inovant, Barclays Global Investors, and Coopers & Lybrand, each providing IT services to financial clients. That at first might seem an odd pedigree for a person running an online media giant – not to mention uncomfortably similar to his predecessor Carol Bartz’s own tech, rather than media, industry background.

However, Yahoo’s primary focus right now is its ongoing strategic review – which could result in a sale of the company in part or whole. What the company needs now, to its board’s way of thinking, may not be a media veteran so much as a superintendent – someone who can quickly evaluate its sprawling products and kick them into shape to boost appeal to suitors and investors.

With his hiring, acting CEO Tim Morse – in charge on an interim basis since Bartz’s abrupt firing in September – will resume his duties as chief financial officer.

Roy Bostock, chairman of Yahoo’s board, hailed Thompson’s “deep understanding of online businesses combined with his team building and operational capabilities.”

During a conference call this morning, Thompson and Bostock played down the comprehensive review and said the primary focus was on Yahoo’s core business and its users. Thompson told investors and press that his experience balancing the needs of PayPal’s users with those of its merchants will serve him in the new job. “We need that at Yahoo – balancing value between consumer experience and the advertisers,” he said.

He also hinted Yahoo’s data could be a key opportunity. “Data is a very hard concept to understand unless you’re in the middle of it. There’s tremendous value if you can organize and interrogate data at the scale Yahoo has.”

Yahoo’s revenue in the third quarter was $1.1 billion, a 5 percent decline from Q3 2010. Meanwhile net earnings totaled $396 million, a 26 percent year-over-year decline.

Ironically, Yahoo’s business strategy during this chaotic period has appeared to regain some focus. Its ad network alliance with Microsoft and AOL aims to bring in new sources of advertiser demand, while its partnership with ABC strengthens its position in premium video. In another step intended to defend its premium ad sales, it restricted remnant sales on Right Media to buyers with a direct seat rather than resellers.

Thompson will also take a seat on Yahoo’s board.

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource