Founder Gets Avalanche of Money to Stay at Tumblr
If he sticks around til June 2017, David Karp gets $81M
By Arden Dier, Newser Staff
Posted Aug 9, 2013 11:17 AM CDT
David Karp reacts during the opening bell at Nasdaq, Thursday, July 11, 2013 in New York.   (AP Photo/Mark Lennihan)

(Newser) – Tumblr founder David Karp has about 81 million reasons to spend the next four years working his current job. The $1.1 billion sale of his baby to Yahoo back in May includes a retention payment of $81 million—$41 million in stock and $40 million in cash, the AP reports, via a regulatory filing yesterday. But the 27-year-old has to stick around until June 2017 to get the full payday. The AP notes it'll likely be a second windfall for Karp, who is thought to have as much as a 25% stake in Tumblr and would have gotten a chunk of change from the sale.

One more detail from Yahoo's filing picked up by AllThingsD: Tumblr had $16.6 million in cash when Yahoo bought it. With 175 employees, Peter Kafka writes that Karp would've had to raise more money relatively fast had Marissa Mayer not stepped in.

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Showing 3 of 4 comments
flatnosepete
Aug 9, 2013 6:29 PM CDT
$1.1Billion for Tumblr which allows people to post pictures...woopdie doo
easterner
Aug 9, 2013 5:40 PM CDT
I Stumble Upon Tumblr a few years ago and it didn't interest me at all.
FayMartin
Aug 9, 2013 12:45 PM CDT
I doubt tumblr is going to be anything but a memory by 2017. The site is run so poorly and it's constantly going through bad design choices that make it increasingly difficult to use effectively. Users of the site keep having to make browser extensions just to make tumblr less of a pain to use, which isn't something I've experienced with any other social media site. Users are constantly on a lookout for some sort of alternative to tumblr that might be better and eventually they're going to find one - that's just how it goes. I really doubt it'll take until 2017, though. I hope they set Karp's money aside and don't spend it, because to me, it looks like they're going to make him sink with his ship if he wants to get paid.