What new CEO brings to Yahoo

NEW YORK: Scott Thompson is not an obvious pick up the lead to Yahoo, but she brings the struggling Internet company expertise, technology and operations.

Whether it is enough to be decided in the coming weeks and months.

Thompson, a leader eBay Inc's PayPal online payments business, was named Yahoo CEO, effective next Monday. He replaces Carol Bartz, who was fired in September after less than three years' work.

Focused on technology and operations rather than marketing or media, Thompson is "a guy who helps to build a clock rather than tell the time," said Gil B. Luria, analyst at Wedbush.

Luria credits Thompson with PayPal turning into "a large, rapidly growing company and predictable payments."

"When he took PayPal, it was much smaller, much more than the emerging start-up that eBay is absorbed in the past couple of years," Luria said.

Yahoo needs such growth to occur long economic funk. It has been losing ground to Google Inc. and Facebook, an Internet advertising even as the market has expanded in recent years. Yahoo's stock price has not been in business for more than 20 dollars over three years. During that time, Google's stock was 49 percent.

Thompson, 54, tries to turn anemic Internet pioneer where others have failed. He believes his roots grow in the Boston South Shore will help gird them for future challenges.

"Boston is an interesting way of thinking," Thompson said Wednesday in an interview that was punctuated by accents in his hometown that he has maintained 18 years after moving to California.

"That's a tough town. Not hard in the sense that it is threatening or dangerous. But you have to be hardy in the East Coast in the winter. I think rubbed off me when I was young. I have never forgotten, where it all began for me."

If Thompson is successful at Yahoo, "he is a hero in Silicon Valley," said Colin Sebastian, analyst at Baird Equity Research. If he fails? Well, "he just be another leader who is able to turn it around."

Thompson is the fourth CEO of Yahoo for less than five years. Tim Morse, the company's CFO, is a leading company temporarily because Yahoo's Bartz government was ousted in September.

Bartz got a job in January 2009, replacing co-founder Jerry Yang, a rocky reign marked by Yang refused to sell the Internet company Microsoft Corp. for $ 47.5 billion - more than twice the value of Yahoo today. Yang, Terry Semel took over in June 2007.

Prior to coming to a PayPal president in 2008, Thompson was the Chief Technology Officer. He came to work after the PayPal Visa, where he was responsible for developing and maintaining the company's global payment system.

Colin Gillis, analyst at BGC Partners, called him and technological leader, who has been a "good run" Paypal. That said, Thompson is not the media or the restructuring of the skills that could be expected that someone took the lead in Yahoo.

"We'll see," Gillis said, summed up the mood of many Yahoo watchers. "He certainly will be a chance to prove themselves."

Yahoo had stepped outside the Internet industry, with Bartz, former CEO of the design and software company Autodesk, Inc., and Semel, who had come from Warner Bros.

Having a leader with technology and Internet background could help.

Or at least it is something different.

"If you're trying to figure out what makes a successful Internet company, I think it takes a strong-tech DNA is important," Sebastian said, pointing to differences in tech-focused and media-oriented Google to Yahoo.

"Companies that are more marketing foundation can not be changed so quickly," he added. "Competing online is a constantly moving target. You have a strong tech foundations to be successful."

Yahoo has been criticized for a slow to adapt to changes in behavior on the Internet. The e-mail service and parts dedicated to general news, sports, finance, and entertainment are becoming increasingly popular, but people are using these services does not stick around for as long as before.

Social networks, Yahoo does not have anything comparable to Facebook, or even Google's new Plus service. Its strategy has been to tie services to Facebook instead of using your own social network site.

Thompson's management style is likely to otherwise Bartz's. Self-described as a "straight shooter," Bartz vowed to less than an hour after he was hired in 2009 to ensure the company gets some "friggin 'breathing room" so it can "kick some butt."

Thompson, in turn, is a more "collegial leadership", which dominates through consensus.

Article Source :- http://timesofindia.indiatimes.com/tech/news/internet/What-new-CEO-brings-to-Yahoo/articleshow/11378611.cms

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