Thursday, October 25, 2007

Palm Closes Elevation Recap

Sunnyvale-based Palm, Inc. said Wednesday afternoon that it has closed its recapitalization with Elevation Partners. Palm said that Elevation invested a total of $325M in Palm, and that it will use the funding plus $400M in debt for a $9 per share cash distribution to its shareholders. As a result of the recap, Jon Rubinsteain, former SVP of Hardware Engineering at Apple's iPod division, and Elevation's Roger McNamee have joined the company's board of directors. Eric Benhamou and Bruce Dunlevie have both resigned from the company's board.