Tuesday, May 21, 2013

Inside Yahoo!’s Tumblr Deal

http://business.time.com/2013/05/21/inside-yahoos-tumblr-deal-heres-who-hit-the-billion-dollar-jackpot/
It will likely be years before we know if Yahoo!’s blockbuster $1.1 billion deal to buy social blogging platform Tumblr was a success. But 24-hours after the deal was officially announced, a few things are certain: The deal represents a landmark event for New York City‘s tech startup scene, and a handful of Tumblr employees and investors are now extremely wealthy. Here’s a quick breakdown of the big winners and how much they made on the deal: Founder David Karp: $253 million. Karp, the 26-year-old high school dropout who founded the company six years ago, owns approximately 25% of Tumblr and is set to reap $253 million in cash as a result, according to data compiled by PrivCo, a New York-based research firm that tracks private companies and the venture capital industry. Investors: $750 million.Tumblr’s investors, of course, hit paydirt. New York-based Union Square Ventures and Boston-based Spark Capital led an initial Tumblr investment of $775,000 in 2007, and then added $4.5 million one year later, according to Bloomberg.