Feeds

Private investment firm greases Palm

Elevated by cash, iPod guru and former Apple CFO

Bridging the IT gap between rising business demands and ageing tools

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.

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.