Could someone explain something to me? When yahoo pays the 1.1B, who does that money go to? Does it go to the original investors apportioned out based on how much equity they have?
It goes to the stock holders. For a company at Tumblr's stage, probably about 55% of stock will be owned by VCs/angels/other investors, 20% by employees, and maybe 25% by founders.
It will also include signing bonuses and golden handcuffs for employees, though that will be tiny relative to 1.1B, so it probably doesn't change the numbers much.
