In a career change with vast potential consequences for the San Francisco Bay Area economy, Yahoo has hired Scott Thompson to be its new Chief Executive Officer. The announcement ends a four-month search to replace Carol Bartz, who was fired after efforts to turn the company's fortune around did not bear fruit. Yahoo has often been a major employer but has also cut many jobs in the past several years. Yahoo’s coming months under Thompson’s leadership will help determine whether the company becomes a job opportunity for thousands of Bay Area residents.
Thompson had been the president of PayPal, the online site that handles the transfer of funds between customers and business sites. Over 100 million people around the globe use the website to handle financial transactions.
His previous work history includes stints with Visa in the global technology field, and tenures with financial giants Barclays Global Investors and Coopers and Lybrand.
Thompson's task will not be an easy one as he will be charged with improving Yahoo's positioning with advertisers in the wake of increased competition from companies such as Facebook and Google.
During Bartz' two-and-a-half years in the CEO position, she failed to increase revenue. The company's revenue from graphic and video advertising has also dropped 1.3 percent over the past year, resulting in speculation that Yahoo may be forced to sell off a portion of its assets should Thompson not be able to turn things around quickly.
However, some analysts believe the hiring of Thompson indicates that Yahoo's current board of directors does not intend to sell off the company in its entirety. The move expresses confidence that he just may be able to turn things around. If he does, Thompson’s professional resume will be among the most cherished in the San Francisco region and the high tech field.
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