Yahoo!: Tumblr Founder Nets 'Golden Handcuff'
It has emerged that the recently completed acquisition of Tumblr by Yahoo! includes a $81m (£52.2m) payment to the internet blogging service's founder.
The retention payment - dependent on David Karp remaining at Tumblr for the next four years - was disclosed in a regulatory filing and part of the windfall that he and Tumblr investors realised by agreeing to sell the service for $1.1bn (£700m) in May.
At the time of the sale, Yahoo! boss Marissa Mayer pledged not to make any dramatic changes at Tumblr in the hope it would not alienate the blogging service's existing users, which include a substantial number of teenagers and young adults.
As part of her promise "to not screw it up," Ms Mayer is allowing Mr Karp, 27, to run Tumblr independently in New York.
Mr Karp is believed to own a stake of up to 25% in Tumblr, which means he probably has already received a windfall though no such payment from the sale has been disclosed.
Under the terms of his retention payment he must stay at Tumblr until June 2017.
It will consist of $41m in stock and options and $40m in cash, according to Yahoo!'s filing.
The documents also disclosed that Yahoo! paid a total of $44m to buy six other companies during the three months ending in June.
All told, Yahoo! paid about $1.15bn (£740m) to buy 10 companies, including Tumblr, during the first half of the year.
Yahoo has bought several other start-ups since the end of June. The prices for those deals are likely to be disclosed in another regulatory filing.