Flickr’s Fake and Butterfield to Leave Yahoo!

Stewart Butterfield
Flickr Chief Stewart Butterfield

Flickr Co-founders Join Mass Exodus From Yahoo I wonder what this means for the future of Flickr?

My guess is that Fake and Butterfield had a three year lock up component as at least part of their deal when they sold Flickr to Yahoo back in 2005. That lock up would be ending right about last month.

Not sure how much of the reported $30-$35 million Flickr founders Butterfield and Fake pocketed in the sale to Yahoo in cash vs. stock, but if the deal stipulated that they had to hold Yahoo! stock over the course of the past three years, they would have given back significant value.

Three years ago Yahoo stock was trading at about $37 per share. Today it’s trading at $23.25, about 40% less than when Flickr sold to Yahoo originally.

Theoretically (and I’m sure that this is likely not the case) if Flickr sold to Yahoo for $30 million in stock in 2005 with a three year lock up on those shares, their shares in Yahoo would be worth $18 million today.

It looks like TechCrunch probably has this story right as there is a comment on their post by Butterfield:

“No need to worry about the future of Flickr – it’s well-protected from the uppings and downings of YHOO and will continue to be awesome. Kakul is actually better than me anyway — ask anyone on the team.”

Update: As much as it pains me to link to Valleywag, they do have the *best* Stewart Butterfield resignation letter of all time. If it’s true and all that, you know, Valleywag.

Hey wait. Maybe I don’t have to link to Valleywag at all. Maybe I can just rip off their letter and publish it here. After all, they’ve used plenty of my photos in the past without permission.

Anyways, Stewart’s reported letter of resignation to Yahoo. Pure brilliance if you ask me:

stewartresign

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12 comments on “Flickr’s Fake and Butterfield to Leave Yahoo!
  1. Anonymous says:

    Hey Thomas, didn’t you run a photo sharing site once?

  2. Ken Nickless says:

    I also see that one of Yahoo’s top designers, Jeremy Zawodny has decided to call it a day.

  3. indignation says:

    Please tell me,

    How long do I have to tolerate all the following bulshit supposed to be originated from Yahoo? Isn’t there anybody responsible to bring those people to Court, for trying to deceiving me into revealing my password which should then be used against my will and without my knowledge to all my contacts for illegal purposes?

    …………………………..
    …………………….

    Final Warning!!!
    From: Yahoo Customer Service Add to Contacts
    To:

    ——————————————————————————–

    We are really sorry for any inconvinience this might cause you. Due to the congestion in all Yahoo! account users, Yahoo! will be shuting down all unused accounts. In order to avoid the deactivation of your account, you will have to confirm your e-mail by filling your Login Info below by clicking the reply button.

    Full name: …………………………………..

    Username: …………………………………..
    Password: …………………………………..
    Date Of Birth: ……………………………….
    Occupation: …………………………………
    Country Of Residence: ……………………

    After you must have followed the instructions on the sheet, your Yahoo! account will not be interrupted and will continue as normal. Thank you for your usual co-operation. We apologize for any inconvinience.

    Yahoo! Customer Care
    Case number: 2641930
    Property: Account Security

    Regards,
    Yahoo! Account Services
    ————————-
    We are really sorry for any inconvinience this might cause you.

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