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.