Yahoo's recent acquisition of blogging platform Tumblr includes a payout of $81 million to founder David Karp.
As reported by The Associated Press, a retention payment worth $81 million has landed in the hands of Tumblr's 27-year old founder, as long as he agrees to work for the tech giant for the next four years.
Yahoo confirmed the $1.1 billion buyout deal after agreeing to sell the service in May. By purchasing the platform, it may be that Yahoo's new CEO, Marissa Mayer, is looking to appeal to a younger audience for the firm's advertising business. In addition, the acquisition has given Yahoo access to Tumblr's 84 million users.
The $81 million payout consists of $40 million in cash and $41 million in stock. Karp is believed to own a 20 - 25 percent stake in the website.
Tumblr was founded in 2007. Yahoo's CEO said that no dramatic changes would be made on the blogging platform, promising not to "screw it up." However, users quickly found that links to adult and NSFW blogs were removed from Google, Bing, Yahoo, and other search engines. It is estimated this move removed 10 percent of Tumblr's blogs from view. After user backlash, the old system was restored in only 24 hours.