Elevation Partners pours 100mio $ more down the drainThe folks at Elevation Partner’s have just pumped another 100 million USD into the sinking orange ship commonly known as Palm (more on why Nova is set to tank in just a few hours).

The deal involves the emission of new stock – the outline is below:

Palm, Inc. (NASDAQ:PALM) today announced that Elevation Partners has agreed to make an additional $100 million equity investment in Palm. Under a definitive agreement reached today, Elevation will increase its investment in Palm by acquiring newly issued Series C preferred stock that is convertible into Palm common stock at a price of $3.25 per share, a 31 percent premium to the closing price of Palm common stock on Dec. 19, 2008. The Series C preferred stock carries a 0% dividend rate. Elevation will also receive warrants to acquire 7 million shares of Palm common stock at the same price. Prior to March 31, 2009, Palm may elect to cause Elevation to sell up to $49 million of this new investment to other investors on the same or better terms than on which Elevation invested.

“The additional capital from Elevation Partners will enable us to put added momentum behind the new product introductions scheduled for 2009 and will provide us with enhanced stability in unsettled economic times,” said Ed Colligan, president and chief executive officer of Palm, Inc. “Elevation has been a great partner to Palm, and we appreciate their continued confidence and support.”

Looks like the Orange folks are starting to run out of money for good (Centro sales post-peek?) – things could get very funny very soon…

Related posts:

  1. Elevation Partners on Palm
  2. Elevation Partners increases Yelp investment
  3. Elevation Partners: we still support Palm
  4. Palm Investor sues due to “unfair” takeover bid
  5. Elevation Partners: Pre will kill iPhone 2G

6 Responses to “Elevation Partners pours 100mio $ more down the drain”

  1. Wow. Have you got special magical powers or do you have insider information to support your claim that a huge concern like Elevation are actually throwing their money away?

    And your experience of corporate funding is what, exactly?

    If the new Palm stuff is crap, then let’s say so when the details are released, but if you’re just posting this stuff on a hunch, then that’s very, very poor stuff indeed.

    And highly unprofessional too

  2. Tam tam tam… ;(

    ~Rant^H^H^Hyan

  3. You are starting to sound like all those trolls who have been flooding PIC for years now. Lets be reasonable and wait until things actually happen (or fail to do so) before making commentary.

  4. Let’s wait and see what Nova is like before crucifying it. I for one will give it a fair chance first.

  5. While I would like to give Nova a chance (I would have given the Foleo a chance had it been released), I will not pay the cellular companies’ exorbitant data rates. Hence a smartphone is of no use to me. And Palm has stated that there will be no more PDAs. All indications from Palm is that Nova will be available on phones only.

    Once the PDA market has been completely killed off (note I didn’t say dead) I will re-evaluate my options.

    The other reason that I agree with Tam is Palm’s track record over the last five years. Even what could be deemed as successes by Palm, suffered from quality issues that weren’t there in their early days. Palm’s ease of use and quality build were what attracted me to their products over Psion.

  6. Hi Folks,
    thank you so much for your email – I am sorry for my agressive formulation.

    However, I see how Palm OS developers currently fare (aka they die), and how little we all know about Nova.

    A friend of mine works at one of the biggest software companies in the Palm OS space, yet has not heard of Nova so far….

    Add in the usual self-greatness….and it looks bad IMHO.

    All the best
    Tam Hanna

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