TUMBLR EMPLOYEES SET FOR A BUMPER PAYDAY– In the wake of the sale of Tumblr to Yahoo for a staggering $1.1 billion employees are set for an early Christmas with a bumper payday as a result of Yahoo’s acquisition.
There are 178 employees and all are set to increase their banks accounts by a sizable amount. The founder of Tumblr, David Karp, is understandably one of the biggest winners in the sell-off who is estimated to walk away with more than $250 million.
Right: David Karp, CEO Tumblr | Left: Marissa Mayer, CEO Yahoo
With $250 million in the bank, and providing it is not squandered, this will be enough to allow the 26 year old founder to live a lavish lifestyle without ever having to worry about working again.
It is reported that the first 10 employees that joined Tumblr will each receive approximately $6.2 million. Next in line for a bumper payout are the 30 employees that joined after the original 10 employees of which each are expected to walk away with $3.3 million. As for the remaining 138 employees it is estimated that each will receive around $370,000.
It is unlikely that any of the Tumblr employees will be complaining about the sale of Tumblr to Yahoo and Yahoo have already announced to Tumblr’s 100 million users that Tumblr will essentially stay the same and that Yahoo’s CEO Marissa Mayer commented that’ “We promise not to screw this up.”
While David Karp won’t need to worry about working he is to stay on as CEO of Tumblr and continue to run and develop the site.
Some pundits have suggested that Yahoo over paid for the Tumblr acquisition due to its relatively low turnover of just $13 million a year from its 100 million users; a figure that was made possible by a venture capital injection of $125 million.
From the sale the two initial investors, Union Square Ventures and Spark Capital will take $253 million and $154 million respectively, leaving $693 million to be divided up between David Karp and his employees.
The news of the sale is excellent news for other up and coming websites and blogs who one day hope their creation will generate a huge following and carry a similar price tag. There is little doubt that as the social media network grows there is room for others to enter the market with new themes and content ideas that make it easy for users to interact with one another.
I for one will not give up on my little venture and I am, as I write this, exploring new ways to make Meebal.com more interactive.
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