Monday, June 4, 2007

Elevation Invests $325M In Palm

Sunnyvale-based Palm, Inc. announced today that Elevation partners is investing $325M in the firm, in a recapitalization of the firm. The deal calls for a cash distribution of $9 per share to shareholders of Palm, drawn from the Elevation investment plus $400 in new debt in the company. Jon Rubenstein, former SVP hardware engineering in charge of Apple's iPod division, will join the firm as part of the deal. Fred Anderson and Roger McNamee of Elevation will also join the board, which will result in Eric Benhamou and D. Scott Mercer's departure. JPMorgan and Morgan Stanley are managing the debt portion of the deal.