David Karp, the 27-year-old founder and CEO of the micro-blogging network Tumblr, is to receive $81 million from Yahoo to stay with the company for four years.
Yahoo filed a 10-Q report about the 10 start-ups it bought between March and June of this year, including and most famously Tumblr, for $1.1 billion, and who hosts over 131 million blogs.
In this Q-10 report, Karp's compensation package was revealed. In addition to the estimated $250 million he received in cash and the $29 million in stock, he will also have a salary of $10 million per year for every year he stays with the company. He will also be receiving an additional $41 million in stock, which could become more or less by the time he receives the payment.
The report also revealed how Yahoo's timing came perfectly, with Tumblr seemingly losing more money than it could afford. Back in September of 2011, Tumblr had raised $85 million from investors, of which only $16.5 million was left by the time Yahoo purchased the company. And with a staff of around 175 people, Tumblr would have had to raise more money to remain operational.
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