Feeds

Private investment firm greases Palm

Elevated by cash, iPod guru and former Apple CFO

High performance access to file storage

Struggling to regain its edge in the smartphone market, Palm has reached an agreement to sell a quarter of the company to a private equity firm and to place a former iPod guru in an executive seat.

Elevation Partners will pay a special distribution of $8.50 per share, or about $940m of convertible preferred Palm stock, to take its stake. The company also agreed to invest $325m into the company.

As a part of the deal, Jon Rubinstein, the former Apple executive behind its iPod division, will join Palm as its executive chairman of the board. Managing directors at Elevation Fred Anderson and Roger McNamee will also take board seats.

Anderson, the former CFO at Apple, recently settled with the Securities and Exchange Commission on charges related to stock option backdating. He agreed to pay back approximately $3.5m without admitting guilt to make up for personal gains in the scandal.

"As a result of this transaction, we will strengthen the Palm leadership team and create a more effective capital structure, which puts us in a great position to attract new talent, significantly strengthen our execution capabilities and deliver long-term shareholder value," Palm CEO Ed Colligan said.

Palm is best known for its Treo line of smartphones. The company began its latest revitalization attempt last week with the announcement of a "smartphone companion product," the Foleo.

Elevation's investment — the $1.9bn private equity firm's largest to date — will help Palm fight against competitors in the smartphone game with deeper pockets. Mobile phone makers are currently bracing themselves for the potential impact of Apple's iPhone due out on June 29. ®

Bootnote

Notably among Elevation's five partners is Bono, lead singer of U2. The Register ventures to guess he doesn't sit in on too many board meetings.

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.