Paypal’s Thompson named as Yahoo head
Yahoo has failed to keep up with market rivals, previous head dismissed in September
Scott Thompson, president of online payments firm Paypal has been named as the new head of Yahoo.
Carol Bartz, Yahoo's previous chief executive was dismissed in September after failing to turn around the company's fortunes.
Since Thompson joined Paypal in 2008, he managed to double the company's user-base.
Yahoo has failed to keep up with market rivals such as Google and is undergoing a strategic review.
Yahoo's share price has recovered from the lows hit earlier in 2011, although profits are stagnant.
According to the BBC, Yahoo has spread itself too thin, trying to compete with Microsoft, Google, AOL and others at the same time.
"Scott brings to Yahoo a proven record of building on a solid foundation of existing assets and resources to reignite innovation and drive growth, precisely the formula we need," Yahoo chairman Roy Bostock told the BBC.
He added that Thompson would focus on Yahoo's core businesses, but would also work closely with the board on its strategic review of what new investments to make and business lines to dispose of.
Shares in Yahoo were down 3.1% at the close of trading in New York, while shares in Paypal's parent, eBay, closed down 3.77%.
The broader Nasdaq tech index closed up 0.33%.