David Karp, 27-year old founder of Tumblr, is set to earn a bonus of $81 million in addition to his salary if he stays at Yahoo! for the next four years. Tumblr was launched in Feb. 2007 by Karp, a New York City high school drop out and acquired by YAHOO for $1.1 billion in May 2013.
Yahoo Inc is acquiring blogging service Tumblr for $1.1 billion cash.
The deal will use about 1/5 of Yahoo’s $5.4 billion in cash and marketable securities.
“Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business,” Yahoo said in a statement on Monday.