Feeds

Investment firm slips $100m into Palm's stocking

Or glove... or something...

The Power of One Infographic

Palm is getting the greatest gift of all this holiday season. No, not family, friendship, and goodwill towards men – $100m.

Private equity firm Elevation Partners has agreed to make a $100m investment in the struggling smartphone maker to help keep things running during the economic dumps and push its 2009 product line – most notably Nova, a new Linux-based OS for mobiles arriving next month.

The money goes on top of its massive investment from Elevation Partners in June 2007, which also placed Jon Rubinstein, the former Apple executive behind its iPod division, as Palm's executive chairman of the board.

The latest injection gives Elevation a 39 per cent stake in the company, according to Bloomberg. The firm will buy Palm stock at a price of $3.24 per share, a 31 per cent premium to its closing price on December 19, 2008. Elevation also has warrants to acquire 7 million additional shares of Palm stock at the same price.

Palm added it can make Elevation sell up to $49m of the new investment to other shareholders at the same price or better terms by March 31.

"We believe that Palm is in a position to transform the cell phone industry, and we are pleased to have the opportunity to make this additional investment in the company," said Roger McNamee, co-founder of Elevation Partners in a statement. "Palm has an industry-leading team and an exciting, differentiated product roadmap. We are proud to be associated with the company and look forward to great things from Palm in 2009 and beyond."

With its Nova OS, Palm is hoping to take two per cent of the smartphone market. But with competition from Android, Windows Mobile, Symbian (and the iPhone's flavor of OS X), even that may prove a major challenge.

Many Reg readers are doubtlessly pondering at this point: "I wonder if U2's Bono fits into this story at all?"

Funny your mind should wander there. Bono just happens to be 1/5 of Elevation's investment team. So does this count as Bono saving Christmas? (We knew he'd attempt it sooner or later.)

Ehh – we'll give him partial credit. ®

The Power of One Infographic

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.