Andre Yoskowitz
19 Sep 2013 14:48
Former Nokia CEO Stephen Elop, who was also formerly a high-ranking executive within Microsoft, will make $25 million in termination fees if Nokia shareholders agree to sell the handset business to Microsoft.
The software giant will pay $5 billion for the mobile phone division, and $2.17 billion for Nokia's patent trove when the deal is approved. Additionally, Microsoft extended at $1.5 billion loan to Nokia. The company says the transaction will close in the Q1 2014, pending approval by shareholders and regulatory approval.
Elop will make the money immediately alongside an announcement the deal has been approved, as he will also be standing down from his position. Microsoft will pay 68 percent of the fee.
The exec will head back to work at Microsoft after the deal closes, which has had many in the Finnish media calling him "a Trojan horse." Indeed, Nokia's handset business collapsed since he was named CEO and Microsoft was able to purchase the company for cheaper than anyone would have expected even just a few years ago.
Nokia shareholders vote on November 19th.