Palm Sells 25% Stake to Private Firm
Jun 4, 2007, 8:18 AM by (staff)
Less than a week after releasing the Foleo Treo companion device, Palm announced that it has sold 25% of the company to a private equity firm, Elevation Partners. Elevation paid $325 million for its quarter share of Palm, which is reorganizing itself in an attempt to strengthen the business. As part of the restructure, Palm is bringing in Jon Rubinstein as executive chairman to help manage the company. Rubinstein formerly ran Apple's iPod division. Also as part of the deal, Fred Anderson, Apple's former CFO, and Roger McNamee, a co-founder of Silver Lake Partners, will join the board. Palm will pay a $940 million dividend to shareholders, which breaks down to $9 per share. U2's Bono is one of the founders and investors of Elevation Partners.
Apple Scoops Up Mapsense
Apple has purchased a small mapping company called Mapsense, reports Re/Code. Apple paid between $25 million and $30 million for the San Francisco-based firm, which "builds tools for analyzing and visualizing location data." The company's 12-person team will be folded into Apple's Cupertino headquarters.
Sprint Separates Device Leasing Business to Manage Cash
Sprint today sold part of its device financing business to a newly formed entity called Mobile Leasing Solutions for $1.2 billion. The new company is being backed by a group of equity investors, including Sprint's parent company, SoftBank.
Sharp Leaning Toward Foxconn's $5.5B Bid
Sharp is favoring an acquisition offer from Foxconn over a potential rescue from Japanese investors. Sharp has lost market share in the consumer electronics business over the last few years while prices for its display panels have sunk.
Apple Must Pay VirnetX $625 Million Over Patent Violations
Apple has been ordered to compensate VirnetX $625 million for using one of the company's patents without permission. VirnetX's patent covers "the use of a domain-name service to set up virtual private networks." Under VirnetX's patent, the VPNs are then used by corporations to communicate with customers or employees.
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