It’s been an intense couple of weeks at Yahoo! It has been about two weeks since Scott Thompson was hired as the CEO of Yahoo! and Jerry Yang stepped down completely from the company. Yesterday the company announced their quarterly results and it turns out that they saw a revenues loss from the year before.

Yahoo! Inc. has hired Scott Thompson as Chief Executive Officer, effective on January 9, 2012. Tim Morse will return to his duties as Chief Financial Officer, who was serving as the interim CEO when Carol Bartz was fired. Thompson has also joined Yahoo!’s board of directors. Thompson served most recently as the President of eBay subsidiary PayPal.

eBay Inc. (NASDAQ:EBAY) subsidiary PayPal is going to start competing head-on with Groupon and LivingSocial by offering daily deals starting next year. The coupons will be based on the buying habits and mobile locations of their users. PayPal has partnered with 200 U.S. merchants on this initiative said PayPal President Scott Thompson.

eBay Inc. (NASDAQ:EBAY) expects PayPal’s revenue to increase substantially.  PayPal is eBay’s second largest business.  This is good news for eBay since their revenue and profit dropped last quarter and their stock has been dropping since 2004.

PayPal President Scott Thomson stated that the company should double in size over the next three years.  PayPal is expected to process between $100-$120 billion in annual payments around 2011.  PayPal has about 70 million active users.  They processed over $60 billion in transactions around 2008.  PayPal is available in about 17 languages and accepts about 19 different currencies.

PayPal takes a cut from each transaction and ended up making $2.4 billion in 2008. eBay itself made about $8.5 billion. If all goes according to plan, PayPal’s expects their own revenue to increase to $4-$5 billion around 2011.

“It doesn’t matter where you go online today,” stated Thompson. “Almost everybody needs a fast, secure way to pay for something.” PayPal is still working on integrating Bill Me Later into their own service.  Bill Me Later was acquired by eBay in October.