Internet, News

Yahoo to shell additional USD 81 mn to keep Tumblr founder David Karp for 4 yrs

Founder, Tumbler Image Credit: msn

Founder, Tumbler
Image Credit: msn

It seems that Yahoo’s CEO Marissa Mayer is keen on keeping her promise of ‘not screwing’ up Tumblr after its acquisition. After allowing it to operate independently in New York, Yahoo recently disclosed in its latest regulatory filing to offer $81 million additional payment to tumblr founder David Karp. The compensation will be made in form of $41 million stock (current value of stocks) and $10 million of annual salary in cash, if he continues working with the Yahoo team for the next four years i.e. till June 2017.

To be pointed out, David Karp, who owned 20-25% of the tumblr stake, had already received $250 million as part of the deal.

In connection with the acquisition, another $29 million is assumed as unvested stock options and restricted stock units as compensation expense over the 4 year service period.

Also, as per the filing, no amounts have been allocated to in-process research and development and $751 million has been allocated to goodwill.

The Tumblr acquisition was considered as one of the biggest acquisitions of Yahoo involving an amount of $1.1 billion, proposed to be an all cash deal as per the previous reports.

It was also revealed that during the six months ended June 30, 2013, the Company acquired nine other companies, for a total aggregate purchase price of $54 million.The prices for those deals are likely to be disclosed in another regulatory filing in October and November.

During Yahoo’s Q2, 2013 earnings release, Mayer also disclosed that at present, a quarter of a million new blogs are being set up each day on Tumblr and daily active users are up 120% across mail applications. She also hints at Tumblr integrations into Yahoo products in the future.

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