Can Scott Thompson put Yahoo's ad business back on track?

Yahoo! has named former PayPal President Scott Thompson as its next CEO, setting the stage for an overhaul of the Web giant's stagnating display-ads business. The appointment of Thompson, a product and technical specialist, surprised some analysts, who had expected Yahoo! to name a chief with digital-advertising experience. "He's not a proven media executive. Yahoo! is an advertising-driven business. So I'm a bit surprised that they again went outside the industry to tap a new leader," said analyst Clayton Moran.

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