World

Scott Thompson – Yahoo’s new CEO

After firing its former CEO, Carol Bartz in September, Yahoo is determined to attribute the vacant position to Schott Thomson, says Reuters. Thompson worked as the President of Pay Pal until he was contacted by Yahoo to take Bartz’ position.

Google and Facebook, the two most powerful competitors of Yahoo, are getting increasingly stronger on the market. Consequently, the former Web powerhouse is preparing various organizational changes to keep up with the other two companies. The first move they made was to fire Bartz in September. Since then, the position of the executive director was occupied by the interim CEO and former chief financial officer Tim Morse.

During Thompson’s management, Pay Pal has registered a flourishing period. He has been running the online payments unit of eBay since early 2008. Before becoming the president of the company, he was the chief technology officer. In the third quarter of 2011, Pay Pal processed $29 billion in payments.

When asked to confirm whether Thompson will become Yahoo’s new CEO, none of the companies have responded. Although Yahoo and Pay Pal refuse to make any comments, anonymous sources sustain that the two parties will soon sign the deal.

Yahoo was one of the first Web companies to offer mail, search, news and photo-sharing services. The firm grew very popular after its launch in 1990s, but it is now struggling to maintain its position. The situation is all the more difficult as many powerful rivals threaten its stability.

Microsoft expressed its wish to take over Yahoo in 2008, but the Web firm rejected the $44 billion offer. The global financial crisis has further damaged the stability of the company and now Yahoo’s market value amounts to only $20 billion.

Co-founder Jerry Yang left the company in 2008 because he was severely criticized for his incapacity to handle the bid. Given these financial problems, Yahoo was eventually obliged to cut thousands of jobs and to accept an advertising and search partnership with Microsoft.

Yahoo is currently thinking of slashing its stakes in the Chinese company Alibaba Group and its Japanese affiliate. The share deal is worth $17 billion.

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Ronald Silva is one of our newest publishers.He currently lives in Toronto (Canada) with his family.Ronald covers the music and sports sections of DailyGossip.org. Over the past few years, Ronald has participated in various journalistic projects including some of which he started when he worked for a local newspaper in Toronto. Contact him at Ronald.Silva@dailygossip.org.

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