Bono-backed Palm investor stands firm

U2 front man Bono’s investment firm says it won’t pull out of Palm, despite the device-maker’s share-price hitting a 14-month low on Friday.

Elevation Partners, which has two influential founders on Palm’s board, backed the device maker after its share price dived 29% the day after it reported its 11th straight quarterly loss for fiscal 3Q10, and cautioned revenues in the current quarter would fall short of analyst’s forecasts , Reuters reports.
 
Net loss in fiscal 3Q10, which covers the three months to February 26, was $102.8 million (€76 million), far higher than analysts had forecast , ZDNet reports.
 
Palm’s management reportedly said revenues in its 4Q10 would be $150 million, half the amount that analysts predicted, according to Canada’s thestar.com, and down from $366 million in the third quarter.
 
A spokesperson for Elevation Partners quoted by Reuters, blamed Palm’s ongoing poor performance on short-term execution issues regarding its mobile operating system, but backed the firm in the long term.
 
The private equity firm has invested a total of $460 million in Palm since 2007, and currently holds a 30% stake in the device maker.
 
However, Palm has reported a net loss for the past two years, meaning if Elevation Partners made the same investment today, it would get a stake of up to 70% , Wired.com reports.
 
Elevation Partners has also put former Apple men Fred Anderson and Roger McNamee on Palm’s board, and current chairman Jon Rubenstein is a former employee, who also developed Apple’s iPod.
 
Bono is one of six partners who founded Elevation Partners in 2005.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.