Tumblr’s Karp accepts $81m to stay at Yahoo
Blog startup founder to stay at Web firm for four years
Yahoo! has persuaded Tumblr founder David Karp to stay on at the company for a further four years, for a fee of $81m, online media reported.
The agreement follows a $250m payout to 27-year-old Karp in May when it was announced Yahoo! would buy his blogging platform. Yahoo! made a now-famous pledge at the time not to “screw up” the acquisition, words that came to haunt the search company when some of Tumblr’s more risqué content vanished from public search engines, leading to a user backlash and subsequent reinstatement of the links.
Yahoo’s youthful CEO, Marissa Mayer, has plotted an apps and services course for the company and according to Forbes, Yahoo! stock has risen 73% during her tenure, despite a decline in market share and revenues.
Analysts remain unconvinced that Mayer can find a way to monetise Tumblr, a community that is relaxed in its content and ad-free. While many brands may not want to be associated with the nature of some content, any censorship may drive away users and diminish the platform’s value.