Thompson’s appointment comes five months after the firing of earlier CEO Carol Bartz as Ex-Web powerhouse Yahoo fought to compete with newer heavyweights Google and Facebook.
The move also specified that Yahoo’s board is doubtful to sell the company. Chairman Roy Bostock said Wednesday that Yahoo would nearly definitely remain publicly traded.
Thompson, who will also unite Yahoo’s board, had run PayPal, the online payments unit of eBay, since early 2008, and was formerly its chief technology officer. Under his leadership Yahoo said that PayPal improved its user base from 50 million to over 104 million active users. PayPal processed $29 billion in payments in the third quarter of 2011.
Yahoo’s shares were down almost 3 percent in early trading Wednesday and eBay shares fell over 5 percent as analysts said the online retailer would neglect the respected Internet executive.
Brett Harriss, an analyst at Gabelli & Co, which owns Yahoo shares, said that “It’s probably a slight negative for Yahoo, because it makes the sale of the entire company to someone like Microsoft less likely. He’s certainly a competent manager and he’s certainly been successful at PayPal.”
Lately, Yahoo has been discussing slashing its stakes in China’s Alibaba Group and its Japanese associate as part of a share deal worth concerning $17 billion, according to sources.
Yahoo rejected in 2008, an unwanted takeover bid from Microsoft worth as regards $44 billion. Its share price was consequently pummelled during the global financial crisis and its recent market value is concerning $20 billion.
Co-founder Jerry Yang stepped down in late 2008 after being harshly criticized by investors for his handling of the bid. The company cut thousands of jobs and afterwards agreed to an advertising and search partnership with Microsoft.