Yahoo $1.1 billion Tumblr buyout details emerge
Blogging service Tumblr had just $16.6 million in cash when Yahoo Inc. bought it last May for $1.1 billion, a Yahoo regulatory filing showed Thursday.
The deal for Tumblr was the largest since Yahoo Chief Executive Marissa Mayer took the role in July with a focus on reversing a long decline in Yahoo’s business and web traffic. The deal also made Tumblr founder and CEO David Karp, 27, a multimillionaire.
Technology blog AllThingsD reported the details on the filing earlier Thursday.
Yahoo also said in its 10Q filing with the Securities and Exchange Commission that it would give Karp both $41 million in Yahoo common stock and $40 million in cash over a four-year period as long as he remains a Yahoo employee.
Yahoo did not immediately respond to a request for comment after normal business hours Thursday.
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