YAHOO'S $1.1 billion acquisition of Tumblr has not only made its CEO David Karp a wealthy man, some of his most loyal staff will rake it in as well.

Founder David Karp, 26, made headlines this week when Yahoo! snapped up the blogging site for $1.1 billion.

Karp, who owns 25 per cent of the company, is set to receive an estimated $209 million, plus stock in Yahoo! according to financial analysts PrivCo.

This is in addition to his existing $200 million fortune. But Karp has no immediate plans to enjoy the spoils - he has no plans to upgrade his relatively modest $1.6 million Brooklyn apartment he shares with his girlfriend.

Investors will also win big, with Union Square Ventures and Boston-based Spark Capital, who both invested around $350,000 in 2007, expected to walk away with $198 million each, or a 1423 per cent return on investment.

Sequoia Capital will also net around $217.8 million for a $22 million investment made in December 2010, still a healthy $877 per cent return, PrivCo reports.

Tumblr’s 178 staff members will divide $66 million between them, or an average of $371,000 each depending on when they joined.

The first 30 employees will get an average payout of $3.6 million each, with staggered payments meaning the first ten employees could score a payout of $6.2 million. Newer employees will receive less - but most can expect healthy bonuses.

That includes Marco Arment, the self-described "ideas editor" who started working for Tumblr in 2006.

“I won't make yacht-and-helicopter money from the acquisition. But as long as I manage investments properly and don't spend recklessly, Tumblr has given my family a strong safety net and given me the freedom to work on whatever I want. And that's exactly what I plan to do,' he posted on his blog.

Other core staff members include Jacob Bijani, who joined in December 2008 as a product engineer, creative director Peter Vidani who was responsible for the stripped back look of the site, and director of outreach Meaghan O’Connell.

"I will dab your tears with hundred dollar bills," Meaghan O’Connell joked on Twitter.



Tumblr's former President John Maloney also tweeted the sale was an "emotional day" before adding that he "just bought some Yahoo stock."

The sale is also regarded as a huge coup for New York's tech start-up scene, with PrivCo CEO Sam Hamadeh saying it could create a "Tumblr mafia" that will recycle their money into the next generation of start-ups.

"We have seen this in Silicon Valley with the 'PayPal Mafia' that went on to found or seed ... and more recently with Buddy Media's $689 Million acquisition by Salesforce - with alumni called the 'Buddy Media Mafia' already founding and seed investing in each other's new startups. PrivCo fully expects 2014 to be the year of the 'Tumblr Mafia.' " he wrote.