Palm receives $100 million investment from Elevation Partners

Palm secured a $100 million equity investment from Elevation Partners, getting a lifeline of support as it enters a critical juncture, faced with mounting losses, weak smartphone sales and the launch of a new operating system that could potentially revive the company.

Elevation, a private equity firm, got Series C preferred stock in the deal, which it can convert into common stock at a price of $3.25 per share. The company also will get warrants to acquire 7 million shares of Palm common stock at the same price.

The infusion of cash and support comes at a perilous time for Palm. The smartphone maker just posted a loss of $506 million in its fiscal second quarter and saw both its revenues and the number of smartphones sold drop. The news also comes just ahead of Palm's expected launch of its new operating system, Nova, which it is set to unveil at the Consumer Electronics Show in Las Vegas early next month.

For more:
- see this release

Related Articles:
Palm loses $506 million, sees drop in revenue
Palm hoping for a spark with Nova OS

Suggested Articles

Comcast added 261,000 wireless subscribers in the fourth quarter, its largest gain yet in a single quarter.

British officials have reportedly formally recommended letting Huawei participate in certain portions of the country’s 5G networks.

Today, the company announced the expansion of its trial program to an additional 20,000 participants.