Yahoo Names PayPal Exec as Its New CEO

The Internet company names Scott Thompson to lead turnaround.
9:38 | 01/04/12

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:

{{nextVideo.title}}

{{nextVideo.description}}

Skip to this video now

Now Playing:

{{currentVideo.title}}

More information on this video
Enhanced full screen
Explore related content
Comments
Related Extras
Related Videos
Video Transcript
Transcript for Yahoo Names PayPal Exec as Its New CEO
I was opening this morning at its highest level in nearly five months. Following yesterday's jump of nearly -- 180 points. Joining me now to discuss all the business headlines at this hour Susanna Helen grant from Bloomberg TV good morning Suzanne -- In morning so -- -- get to the markets let's start with some breaking news Yahoo! has just named a new CEO Scott Thompson. Tells about his background. That's right to Scott Thompson had very important to. Feldman free -- Scott Thompson previously was that -- how. Which as -- know is part eBay. A couple of things about Scott Thompson according to analysts he's very well liked and Silicon Valley and on Wall Street he did a tremendous job that -- -- increase sales. And users he also worked under Meg Whitman who let me now is now CEO and not yet after she had -- -- six. For -- political career so. What we're seeing today is a very significant developments react and don't forget Stephanie this is a company is really -- that direction last. For a number of months they fired CEO Carol Bartz basically back in September. -- Whitney came in -- just a few weeks ago she is starting to put her mark on the company -- it very significant development in what analysts are saying is finally. Scott Thompson will come in Seattle and help stabilize the company a lot of people there -- have an effect seen. So what he's expected is come in and really. Get -- back to where it needs to be as we now they've been losing users they need to really boost up that house will be some of his top priorities Gibbons sort of all the chaos they've been undergoing an -- -- investors expected to respond. -- it is just seen night after he shares based on we're still in an early go but. Are a little bit weaker right now and a couple of things at Thompson will need to do you first -- -- need to come and and assure employees that he's going to get Yahoo!'s under action but what we're hearing now from Wall Street is so we're calling Yahoo! was a takeover candidate a number private equity firms as we've reported on numerous occasions. We're looking to potentially make a bid for. That apparently is off the table. Because of his appointment because typically how it works if they're working its takeover by -- private equity firm. Or perhaps another company they would like to have a saying -- that CEO would be so. That's perhaps why we're seeing a little bit of weakness in the stock today not longer term. This is very positive so what will need to do now is get the company in tip top shape and then decide whether or not he needs to sell off assets for example -- about -- there. They're eating Nina what will the need to do with that. That's something that we're going to be keeping and I am so I'll come this isn't very positive development re out even now you may see some weakness in the -- today that's primarily -- -- It's no longer take over and just saying okay 2012 began with a bent on Wall Street yesterday does look like will be able to hold on to those gains today and in just in the first few minutes looks like the Dow is trading pretty flat. Flats they know what it's like yesterday certainly is people coming back from the long holiday and really -- asked about a better 2012 and the prior year so today we're -- perhaps. A breather the toughest strategist -- Adams -- lost market today she's -- -- one day certainly doesn't make it trend. But there -- a number of reasons that we may see consciousness today we did have Italy's largest bank UniCredit announcing it would -- its stock sale. As -- year continues to struggle with its debt problems that tells us. That UniCredit needs to shore up liquidity and capital that. Is. Not necessarily a positive sign it is seeing as we have a lot of other news today on economic -- Out of sales investors taking a little bit of a wait and see approach today. Until we get more positive morning Mitt. Romney won Iowa caucus last night as you know -- Rick Santorum was very very close behind. And that Wall Street favors at this point. And here is actually it's Mitt Romney and -- I love results certainly very interesting because it's Estella second Republican Party is still. Pretty much divided -- Mitt Romney has very deep pockets and he's been campaigning very heavily yet he didn't get that -- results that you do you might expect but yes Wall Street -- Mitt Romney in recent weeks heading into Iowa he did get the backing of several high profile Wall Street people. Including Stephen Schwartzman whose CEO of private equity firm Blackstone. Don't forget also Romney is a former Wall Street guy he'd need his his millions and millions -- Being capital -- he has certainly. And working Wall Street there's been a number of high profile fund raisers for him here in New York. But as we know we're going to be moving into New Hampshire that's really going -- Tell us more about which candidate is going to grab most of the support -- also hearing Stephanie. Senator John McCain may also support her publicly come out and back Mitt Romney I would be very interesting as well because. As we now Senator McCain as well. His followers and his supporters will likely then transfer to met Ronnie and me -- indeed even more attacks in New Hampshire and -- certainly a chip off the old Wall Street. Lawton as you say Suzanne all right let's turn to other market news we know at Sears had a bruising holiday season so bad that it's closing a lot of stores. But these have a plan to boost sales tell -- about that. He Allah will see inside did and Palestinian -- chief merchandising. Executive. His name is Ron fury he's formally a Brookstone. And -- are pretty encouraged by this appointment at his job is going to be. To come into the stores and Sears stores the ones are not closing. And upgrade the stores particularly with technology and that's the problem with Sears and Kmart which is part of this year's -- as well. They just haven't kept pace with technology when you go into the store for example. I -- -- -- target because he going to the stores they're sleek. They're clean technology he it very -- going through the check out. -- plus their products are very head. Except herself alone probably Nancy is hopefully is for this element to -- -- the orient milling upgrade the stores that. See the most traffic in this year's portfolio but it's going to be hard Stephanie mean they've lost a lot of grounding customers in retail it's kind of like tactic -- -- the -- that Friedman. A month there -- customers go elsewhere and is very difficult to win those customers back plus. We have other brands like JC Penney who have in new management as well in particular their CEOs -- form a former apple -- He just signed a deal with Martha Stewart -- he's. Trying to revamp that brand as well so. It will have to go into the stores says he ate his -- this year stories -- -- How bad things -- in there and if the technology can be implemented in this can't be done overnight either -- not having that. We have to keep in mind this is going to be a long -- -- -- the question is. Can they hold on this is a stock that is and hammered over the past year it is 60% owned. -- billionaire hedge fund manager Eddie Lambert the question is how long can he hang on. -- this company and take these losses or will he decide to do something mysterious it appears. He is in for the long because of the hiring -- that new -- happy they need to jump into the future fast all right. Switching gears we're getting numbers today on motor vehicle -- you alluded to this early early or any advance word on what those numbers will be. -- so -- looking pretty -- he did this morning at results from Chrysler Chrysler sales up 37%. The Jeep brand is very strong this is better than expected. Also a couple of minutes before we began our discussion Nissan came out as well as sales better than expected. The first -- automakers to report coming in better than expected apple as well for General Motors General Motors typically reports around and 1030 years -- Those numbers are expected to rise about 4%. General Motors hats -- area a -- and advertising in December they had ads sandy for example at -- as a car salesman doesn't buy cartons and right. I didn't go far I've got to -- giving -- art. But it must it they had rebates for some of their cars Silverado for example. Over 4000 dollars and that's. Probably going to help boost demand but we -- Get continued means that consumers -- in the show rooms and were up Green cards and that's positive news for the economy and that's. Partly what we've been seen an improvement in manufacturing as well also -- reports. Today around the units and what we typically -- what we get these numbers in anatomy have a conference colony discussed. Some specifics in this their outlook on the economy and certainly -- Address oil prices which are a little bit weaker today but still -- that -- 100 dollar barrel mark so that's something that I'll will be listening for throughout today analyst at Wal-Mart look at the doubt right now Suzanne as -- said the jet training pretty flat. Most of the people taking a wait and see attitude right. That's right and also mentioned yet factory orders. This is expected to be an improvement from the prior month this isn't a member number but it's expected the see you right to pursue its decline in October so if we did an improvement that will certainly be -- is -- going forward for the rest of the game in Watson -- -- -- also the Japanese automakers report in the afternoon. Toyota for example -- -- the Japanese out of makers. We're knocked offline because of the -- and we're hearing that they are. At 300%. In the toys are coming back so that's another reason why US auto sales are training better there were a few months where consumers. Couldn't get it clean up or there was -- -- ugly examples. Whatever plan -- -- as well as going to be certainly -- these numbers hasn't mentioned you come out throughout the day and some conference calls and that's. Going to really keep the focus of investors. Three the early afternoon -- three that closing out a busy day -- Susanna -- -- at Bloomberg TV thanks for your time --

This transcript has been automatically generated and may not be 100% accurate.

{"id":15288039,"title":"Yahoo Names PayPal Exec as Its New CEO","duration":"9:38","description":"The Internet company names Scott Thompson to lead turnaround.","section":"Business","mediaType":"Default"}