Photo: Flickr/eBay Ink
Yahoo’s stock is down modestly this morning in reaction to the news that Scott Thompson, formerly head of PayPal, will be the new CEO.This isn’t exactly an indictment of Thompson. He’s a relatively unknown guy, so investors , like the rest of us, are trying to figure out who he is. At first glance, it looks like he’s a “product” guy, not a “media” guy, which could be a mistake. As much as Yahoo wants to be a tech company, the truth of the matter is that it is a media company now. But, that’s a debate for another time.
The bigger picture here from an investor’s perspective is this: Four months ago, Yahoo’s board hit the pause button to formulate a plan and get the company on the right track. It fired CEO Carol Bartz. It talked to PE firms. It make a decision to sell its Asian assets, and it has found a new CEO to lead the company.
The market’s reaction to all of that? Yahoo’s stock is up from $13 to $16. That’s a 20% lift, which is nice, but it’s not exactly a ringing endorsement.