Yahoo ended the four-month vacuum left by the sacking of chief executive Carol Bartz as it chose Scott Thompson, president of online payments service PayPal, as the next head of the US internet media company.
The news drew muted support on Wall Street, with acknowledgement of Mr Thompson’s strong technology credentials tempered by his lack of experience in the media and advertising businesses.
The timing of the announcement also added a fresh twist to negotiations that have been going on behind the scenes as Yahoo pursues potential deals that could reshape the company and lead to it shedding its valuable Asian holdings, though Yahoo said the talks would not be delayed or derailed.
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