Can Former PayPal Boss Bring Yahoo Back to Life as New CEO?

On Wednesday, Yahoo named Scott Thompson as its new Chief Executive Officer.

As of next Monday, Thompson will assume the helm at Yahoo following the controversial removal of Carol Bartz as Chief Executive Officer last September.

Interim Yahoo CEO Tim Morse will assume his previous role as company CFO.

Having spent four years as president of eBay’s thriving payments company, Thompson comes to Yahoo as a wily veteran of the digital and mobile world. He is widely credited with helping grow PayPal into the massive success that it has become.

“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 at Yahoo!,” said Roy Bostock, Chairman of the Yahoo! Board.

“His deep understanding of online businesses combined with his team building and operational capabilities will restore the energy, focus, and momentum necessary to grow the core business and deliver increased value for our shareholders,” Bostock added. “The search committee and the entire Board concluded that he is the right leader to return the core business to a path of robust growth and industry-leading innovation.”

The honeymoon for Thompson, however, will likely be short lived, as Yahoo has been called a ship that has set sail without a rudder or compass.

Is Scott Thompson the person Yahoo needs to give the struggling Internet giant some much-needed direction?