Yahoo! Inc is appointing Scott Thompson as Chief Executive Officer with effect from Monday 9th January. Interim CEO Tim Morse will then resume his role as Chief Financial Officer. The company removed Carol Bartz from the CEO role in October 2011.

Scott Thompson had been president of PayPal until this week, which leaves the eBay division looking for a new leader. eBay CEO John Donahoe will become PayPal’s interim president.

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

“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 well as specific investments or dispositions of assets. We are all grateful to Tim Morse for leading the company with a steady hand during the last several months. His deep understanding of the Company and his positive approach kept the company on course and we will continue to benefit from his exceptional capabilities as he returns to his Chief Financial Officer role.”