Yahoo Will Pay Tumblr Founder David Karp Up to $81 Million to Stick Around

1 min read
This story originally appeared on Business Insider

Tumblr founder David Karp says that he didn't expect to sell his company to Yahoo, or sell it at all, this year. He says he was motivated to sell because Yahoo would give Tumblr a "shortcut" to "all the very hard things" Tumblr had to learn in order to grow.

But on Thursday Yahoo revealed another pretty good carrot to get Karp to sell: Yahoo will pay him $81 million in cash and stocks if he stays with the company for four years. So it said in a form filed to the SEC, and spotted by AllThingsD's Peter Kafka.

Specifically, he gets Yahoo common stock valued at $41 million and $40 million cash. It averages out to about $20 million a year.

The filing also says he gets unvested stock options and restricted stock units valued at $29 million. However, a Yahoo spokesperson tells us that goes to Tumblr employees.

Related: 3 Leadership Lessons From Tumblr's David Karp

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur