Palm, the down-on-its-luck Treo maker, announced Monday $100 million in new funding amid talk it will unveil new products at the January CES trade show.
In addition to the $100 million lifeline, the deal allows Palm to sell shares worth $49 million — or a 31 percent premium before April 1.
The much-needed funding comes as Palm reportedly has just two years before cash is depleted and the company is set to unveil a new handset and a smartphone operating system.
For Palm, the new money provides it “enhanced stability” during the economic downturn.
Elevation Partners, which in 2007 invested $325 million for a 25-percent stake in Palm voiced upbeat reasoning for the additional funding.
“Palm is in a position to transform the cell phone industry,” Roger McNamee, a partner in the private equity firm, said in a statement.
2 responses to “Palm Gets $100M Investment Amid CES Rumors”
Transform the cell phone industry? Yeah, sure. After all the mismanagement and missteps, we’ll believe it when we see it.
Still, I hope they do get their act together again. Even if it’s just to provide some reasonable competition in the market.