Tumblr founder David Karp says he didn't lose any sleep when selling his company to Yahoo! for $1.1 billion, saying that selling to the company would help give Tumblr a shortcut to do all of the difficult things they wanted to do. Admirable, yes. But he left out that Yahoo! would also be filling his pockets with $81 million for four years just to stay at the company. In other words: keep doing what you're doing, and we'll explode your bank account just for doing it.
And the dude is only 27 years old.
Yahoo! CEO Marissa Mayer promised she'd let Karp run things independently at Tumblr, to keep Tumblr's loyal base from splitting. Karp reportedly owns about 20 to 25 percent of Tumblr, so he probably already received some money from the sale. Yet, for the $81 million, Karp has to stay at Tumblr/Yahoo! until June 2017—at which point he'll be free to do what he wants. This was discovered when Yahoo! filled a form to the SEC.
The form also showed that, though Tumblr had raised $125 million in total before selling to Yahoo!, it only had $16 million left when Yahoo! called them up with an offer.