I'll Tumbl For You

When Yahoo Swooped In, Tumblr Was Down to $16.6M in the Bank

That's not much if you're trying to keep all those servers up.
Hi, new  best friend! (Photo by Mario Tama/Getty Images)

Hi, new best friend! (Photo by Mario Tama/Getty Images)

Now that Tumblr’s been welcomed into Yahoo’s purple bosom, David Karp’s days of wheedling venture capitalists are over. If the company hadn’t sold, though, Mr. Karp would’ve been doing a lot of door-knocking with his hat out, because it turns out the company had just $16.6 million left at acquisition. (It’s also a question just how much ads were bringing in.)

Pretty sure there are rinky-dink jungle airstrips with longer runways.

AllThingsD dug the number out of a 10-Q form Yahoo filed to the SEC yesterday. The paperwork also revealed how much Mr. Karp stands to make if he sticks around: $81 million in cash and stock, doled out over the next four years. That’s in addition to whatever Yahoo’s paying (a buttload, presumably) and the $250 million he reportedly made in the sale. No need to worry your pretty little head about his financial future, in other words.

As for how Yahoo arrived at a billion dollar price tag: Tumblr’s assets (tangible and intangible) come to $353 million, with another $114 million in liabilities. What about the rest? Well, here’s how Quartz puts it: “Most of it, $751 million, was attributed to goodwill—or, roughly speaking, the value of the company’s reputation.”

“The acquisition of Tumblr is expected to bring a significant community of users to the Yahoo! network,” the filing notes. Guess it would be to crass to put a dollar value on each of those #teen users.

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