Elevation Partners, a private investing group including Bono and Apple’s old iPod division head Jon Rubinstein, just dished out $325 million for Palm stock, earning them 25% of the company and some seats on Palm’s board of directors.
Upon closing of the transaction, Jon Rubinstein … will join Palm as executive chairman of the board. Fred Anderson and Roger McNamee, managing directors and co-founders of Elevation, will join Palm’s board of directors upon closing of the transaction. Rubinstein, Anderson, and McNamee will replace Eric Benhamou and D. Scott Mercer, who will resign from Palm’s board of directors at that time.
These aren’t the first Apple defectors to come knocking on Palm’s door, either.Shareholders are getting $9 per share as part of the deal. Now, that’s a pretty hefty infusion of cash for an ailing company – will it be enough to carry them through their loss period on the Foleo? Part of that depends on how long Palm will be losing money on it, and by the looks of things, it’ll be awhile until the Foleo starts making money. … Heh, who am I kidding, the only money Palm will make from the Foleo is from excitable investors.