Palm Sells 25% Stake to Private Firm
Why pay a dividend now?
Ok, maybe someone out there knows more than me about this, why would a strugling tech company pay a $9/share dividend? Most tech companies never pay dividend, and then usually only if they have an amazing year or something... It seems to me this money would be better spent on R&D and advertising.
Think of it this way. If there's 100 shares in Palm, Elevation needs to get 25 of them without just increasing the number of shares. So they have to reimburse the existing shareholders to essentially "give up" 25% of the shares they already hold. That...
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