Tumblr’s 27-Year-Old Founder to Get $81M to Stick With Yahoo

by Christopher Freeburn | August 9, 2013 9:48 am

tumblr 185 300x227 Tumblr's 27 Year Old Founder to Get $81M to Stick With Yahoo[1]Talk about providing an incentive…

If David Karp, the founder of Tumblr, stays at the company for four more years,¬†Yahoo (YHOO[2])¬†will pay him $81 million[3]. The deal was part of the terms of Yahoo’s $1.1 billion purchase of the blogging platform earlier this year, the Associated Press notes.

According to regulatory filings, Yahoo will pay Karp $40 million in cash and $41 million in shares, if he remains with the company until 2017.

Karp, a 27-year-old high school dropout[4], continues to run Tumblr from its New York offices and is thought to hold up to a 25% stake in the business, which he founded six years ago.

At the time Yahoo acquired Tumblr in May, CEO Marissa Mayer promised to allow the blogging platform considerable independence[5].

Shares of Yahoo in Friday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/tumblr-185.jpg
  2. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  3. will pay him $81 million: http://hosted.ap.org/dynamic/stories/U/US_YAHOO_TUMBLR?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-08-09-06-49-06
  4. high school dropout: http://investorplace.com/2013/05/7-things-to-know-about-the-26-year-old-tumblr-ceo-who-just-made-220m/
  5. allow the blogging platform considerable independence: http://investorplace.com/2013/05/mayer-gives-yahoo-a-shot-at-not-botching-tumblr/

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