Tumblr Founder to get $81 Million to Stay at Yahoo
Yahoo’s acquisition of internet blogging service, Tumblr has been recently completed. Yahoo will be paying $81 million to David Karp, the founder of Tumblr till the time he remains at Yahoo, which is for the next four years.
This retention payment came into public preview after a regulatory filing was done. Tumblr had decided in May to sell off its services to Yahoo for $1.1 billion. Karp, who is just 27, had started Tumblr in 2007, a few years after he had left the high school. According to Karp he wanted to concentrate on computer programming and hence got into this field.
Marissa Mayer, the CEO of Yahoo has meanwhile decided not to make any major changes in the platform of Tumblr as a substantial number of teenagers are associated with Tumblr and would not like to see any change in the design aspect of Tumblr.
Marissa seems to keep the promise as Karp would be running Tumblr independently from New York.
Karp who is known to have 20 to 25 percent stakes in Tumblr has benefited much from the sale. Though he would be continuing till June 2017 as he has taken the retention money worth$81 million. This payment consists of $40 million in cash and $41 million in stocks. Apart from the retention amount being paid to Karp, around $29 million in stocks will be paid to another employee of Tumblr whose identity is not being disclosed.