Feeds

Investment firm slips $100m into Palm's stocking

Or glove... or something...

Remote control for virtualized desktops

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. ®

Intelligent flash storage arrays

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.