Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • Mobile

    Palm Shareholders Approve Elevation Investment

    By
    Roy Mark
    -
    September 13, 2007
    Share
    Facebook
    Twitter
    Linkedin

      Completing a recapitalization deal announced in June, Palm shareholders, Sept. 12, approved a $325 million investment in the handheld maker by Elevation Partners, handing the private equity firm a 25 percent stake in Palm.

      The deal also calls for Palm to borrow up to $400 million in an associated debt financing and make a cash distribution of $9 per share to Palm stockholders.

      In connection with the transaction, Apples former iPod division chief Jon Rubinstein will join Palm as executive chairman of the board. In addition, Gordon Campbell and Donna Dubinsky will join the Palm board as Class II directors.

      “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 in a June 4 statement when the deal was first announced.

      Makers of the popular Treo line of smartphones, Palm has struggled recently, including a 43 percent drop in fourth quarter profits. Palm also took a $10 million charge Sept. 5 with the cancellation of Foleo, a small portable computer the company never released.

      “This is by far the largest investment that Elevation has ever made, which reflects our enthusiasm for Palm and its opportunity,” Rofer McNamee, an Elevation co-founder and managing partner, said in the June 4 announcement. “We see Palm as uniquely positioned to deliver the integrated software and hardware solutions that will drive the next generation of mobile computing.”

      Click here to read about how Palm was hurt by the iPhone price cut.

      The $940 million distribution to shareholders represents more than half of Palms current market capitalization and allows existing equity holders to retain nearly three-quarters of the post-transaction equity. The company expects to have more than $300 million of cash on the balance sheet after the distribution.

      “This is a company with an impressive history of introducing game-changing products —it pioneered the smartphone—and I intend to help extend that legacy,” Rubinstein said on June 4.

      Check out eWEEK.coms for the latest news, reviews and analysis on mobile and wireless computing.

      Roy Mark

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2022 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×