Scott Thompson, president of PayPal, has been named as Yahoo’s CEO in the hopes that the internet and e-commerce guru will build on his success at eBay and revive the faltering business.
Four months after Carol Bartz, the previous CEO, was fired, the company hires the former Visa payments software platform designer as it struggles to compete with more recent heavyweights Google and Facebook.
It remains to be seen if the appointment will live up to the hopes of nervous investors, but experts have their doubts.
His prior experience in payments poses a risk. And this is a marketing and technology company, not a payment company.
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It’s a good result, but not as good as selling the company, according to fund manager Lawrence Haverty of GAMCO investors, which owns Yahoo shares. “His prior experience in payments presents a risk. And this is a marketing and technology company, not a payment company.
Thompson was regarded as a leader at PayPal who was not averse to placing risky strategic bets. He came up with the concept of expanding PayPal’s online dominance into the real world by enabling payments in retail establishments.
At Yahoo, which has recently struggled to maintain its relevance and advertising revenue in the face of competition from rivals Google and Facebook, that kind of strategic risk-taking could be especially helpful.
Ryan Jacob, chairman and chief investment officer of Jacob Funds, which includes the Jacob Internet Fund and lists Yahoo as one of its largest positions, stated that it “really needs that push to the next level.”
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