14 DAY TRIAL // Palm has decided to sell a quarter of the company to Elevation Partners for more than USD 300 million. This comes as part of the company's intention of reorganizing Palm in order to bring more efficient results.
Palm's decision to sell 25 percent of the company comes as a result of their intention of finding an appropriate financing source for reaching high profits. As a result of this purchase, Jon Rubinstein will become the executive chairman that will contribute to the process of restructuring Palm. Even more, Fred Anderson, Apple's former CFO and Roger McNamee will join the leading board. Palm will have to pay almost a million USD dividends to the shareholders. This makes a single share have the price of USD9.
"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", Ed Colligan, Palm's president and chief executive.
Palm's decision of selling 25 percent of the company in order to gain the money they need for development comes as a result of the high competition that follows them up close. Research in Motion, the creator of the BlackBerry and Apple are pushing Palm to find new solutions on a fast company development. Even more, Google is also considering creating a personal software competitor.
Elevation is a newly developed private equity firm that makes large-scale investments in market-leading media, entertainment and consumer-related business. This company currently holds almost USD 2 billion in capital that can be invested in the near future. Elevation actually aims at helping businesses develop and gain market share. Among the companies that are part of its portfolio, there also count BioWare/ Pandemic Studios, Forbes and Move.