Mr Budde's appointment is being seen as confirmation of Yahoo's interest in original news content. Until now Yahoo! has concentrated on news aggregation services and feeds from news agencies.
Mr Budde was founding editor of Wall Street Journal Online, and has also worked for USA Today and Richmond Times-Dispatch.
More news from dotJournalism:
News editors watch their backs
Pushing online publishing into profit
Wall Street Journal revamps
Yahoo in Chinese freedom of speech row
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