Elevation Partners Invest $100 Million Into Palm

Elevation Partners, a private equity company based in California previously invested $325 million into Palm, Inc. (NASDAQ:PALM).  Recently Elevation announced that they will be investing another $100 million into the mobile device manufacturing company.  Elevation Partners was started by former CFO Fred Anderson, current Electronic Arts CEO John Riccitiello, and Bono.

In Palm’s last quarter, they reported a net loss of $506.2 million and shipments dropped about 13%.  Why is Elevation interested in plugging in another large investment into the mobile company?  Perhaps they are already in too deep from their previous investment.  Another reason is the optimism centered around the upcoming Nova operating system.

About 7-8 million people in the world use Palm’s Treo smartphone devices, but this is not enough to get the company bank in the black ink.  Hopefully the launch of Nova will lead the company to gain some additional customers.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

Elevation Partners Invest $100 Million Into Palm Comments

  1. Vikash Shah says:

    I am very curious to find out what Palm will bring out for Nova. I personally have a palm, and I realize how ugly the internet is rendered on Palms. I mean there are websites that automatically render to phones but they are not as easy to navigate or view.

    In the end its really about the developers creating applications on your platform. If there is no one to create a “demand” for having that phone (apps) then there is no reason to have the platform.

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