Belfast Telegraph

Struggling Yahoo looks to new chief for answers

By Gideon Spanier

The struggling internet firm Yahoo has recruited Scott Thompson, a senior executive from the online auction firm eBay, to be its new chief executive.

Mr Thompson's first task will be to examine Yahoo's future amid reports that the Chinese group Alibaba and private equity firms could mount a takeover bid.

Yahoo has been in limbo for four months since the board fired Carol Bartz after barely two years, as the erstwhile internet giant fell behind rivals such as Google, Facebook and Apple. Mr Thompson has been president of eBay's payments arm, PayPal, and was formerly chief information officer at Barclays Global Investors.

Roy Bostock, Yahoo's chairman, said Mr Thompson's focus will be on its "core business" but he will also help Yahoo to continue its "strategic review process", which could include "specific investments or dispositions of assets". Analysts said Mr Thompson's appointment made it less likely that Yahoo would be sold, and the shares fell 2%.

Yahoo has looked at selling its 40% stake in Alibaba to the Chinese group, but there have also been recent reports that Alibaba is examining a bid for all of Yahoo.