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 m

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.