Tumblr! boss! bags! $81m! if! he! stomachs! FOUR! YEARS! at! Yahoo!
David Karp needs to stay at Purple Palace to cash in
Tumblr founder and chief exec David Karp made a whopping $81m in his deal to sell the blogging site to Yahoo! for $1.1bn.
According to a filing with the Securities and Exchange Commission, Karp will get $41m in Yahoo! stock and $40m in cash over the next four years - but only if he remains a Yahoo! employee during that time.
The huge payouts by the Purple Palace are all the more surprising since Tumblr had just $16.6m in the bank when it was bought out, meaning Yahoo! will definitely have to put some sizeable funds into the business before it can hope to make anything from it.
It's still unclear exactly how Tumblr is expected to make money for its new owner, although the firm said it expected the platform to "bring a significant community of users to the Yahoo! network".
The acquisition of Tumblr is just one in a string of purchases by Yahoo! chief Marissa Mayer, who is attempting to breathe life into the company by bringing in new firms. The billion-dollar buyout was the biggest she's made since she took the reins in July. ®