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.