Numbers Behind Yahoo’s $1.1 Billion Acquisition of Tumblr

May 21, 2013

Yesterday, Yahoo announced that they are buying online blogging forum Tumblr for $1.1 billion, in a deal that is expected to close in the second half of the year.

After a series of small acquisitions totalling less than $50 million, this deal is “a game changer,” according to Marissa Mayer’s, who left Google to become Yahoo’s CEO just 10 months ago. This transaction represents Yahoo’s largest takeover since the purchase of search engine company, Overture, back in 2003.

Here’s a breakdown of some figures surrounding this buyout:

$275 million = amount that David Karp, the founder of Tumblr will receive for his 25% stake in the company;

26 = David Karp’s age;

300 million = number of unique visitors Tumblr receives each month;

$6.2 million = average payout that Tumblr’s first 10 employees will receive;

13 = years Marissa Mayer spent at Google before becoming Yahoo’s CEO last summer;

$5.4 billion = amount of cash Yahoo had in its bank account prior to this acquisition;

175 = number of Tumblr employees;

75 million = number of daily posts added to Tumblr.