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

(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.

David Karp reacts during the opening bell at Nasdaq, Thursday, July 11, 2013 in New York.
David Karp reacts during the opening bell at Nasdaq, Thursday, July 11, 2013 in New York.   (AP Photo/Mark Lennihan)
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