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.
Why pay a dividend now?