Yahoo Picks PayPal Chief for Its Next CEO

According to Yahoo chairman Roy Bostock, Thompson is expected to "restore the energy, focus, and momentum necessary to grow the core business and deliver increased value for our shareholders." Yahoo shares dipped on the news.

Thompson is expected to work with Yahoo's dysfunctional board. Bostock made clear that "Scott's primary focus will be on the core business, and as CEO and director, he will work closely with the board as we continue the strategic review process to identify the best approaches for the company and its shareholders. As part of this process, Yahoo is considering a wide range of opportunities for the company's business, as then as specific investments or dispositions of assets."

A minority stake in Yahoo could all in all go to private equity investors. There are two proposals on that table, one from Silver Lake, another from TPG Capital, and rumors that Google and Microsoft could as well take a run at the struggling Internet pioneer.

Thompson said on a conference call that he is convinced Yahoo's core business assets are stronger than people think, ticking off its traffic, brand, innovation and access to data. Sounds like data's probably his strong suit. He as well has mobile ambitions. Yahoo flubbed mobile.

Up against Google and Facebook sales growth and vision at Yahoo has proven elusive for years now and Thompson's success growing PayPal into what should shortly be eBay's largest business may not transfer over. Alibaba may as well find Thompson as difficult to deal with as Bartz.

The global online payment service

During Thompson's administration Yahoo said PayPal solidified its lead as the global online payment service, expanded its user base from 50 million to more than 104 million active users in 190 countries worldwide, increased the number of merchant partners to more than eight million globally, and grew earnings from $1.8 billion to upwards of $4 billion in 2011.

Before running PayPal for four years he was its CTO and previously that executive vice-president of innovation solutions at Inovant, the unit formed to oversee Visa's global research.

Maureen O'Gara the most read innovation reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected innovation reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara