Palm benefits from $100m boost

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Palm has received another welcome financial lift to the tune of $100 million (£67.5 million) from the investment firm that last year bought a 25 per cent stake in the business.

Known as much for his humanitarian work as his music, U2 frontman Bono extended his charitable side to the mobile giant this week as the company he founded - Elevation Partners - gave Palm another funding hit.

Palm intends to use the money to help it weather the current economic climate in addition to supporting the new product launches planned for the coming year, according to the company’s chief executive Ed Colligan.

Elevation Partners’ co-founder Roger McNamee said that he believed Palm had a revolutionary potential to transform the mobile phone industry.

“Palm has an industry-leading team and an exciting, differentiated product roadmap,” he said. “We are proud to be associated with the company and look forward to great things from Palm in 2009 and beyond.”

Under the terms of the new deal, Palm can still ask Elevation Partners to sell up to $49 million of its investment stake on equal or better terms – provided it does so by the end of March next year.

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