Published in News
Bono loses millions on Palm
Smartphone maker heads to HP
Smug noise merchant Bono has lost a fortune on his investment in Palm now the outfit has been sold to HP.
The celtic crooner was a major investor in Palm through his investment outfit Bono’s private equity venture, Elevation Partners. Elevation invested $460m in the struggling handset maker in 2007 and 2008. The HP deal values Palm’s equity at $961m – the rest of the deal price is debt, meaning Elevation’s stake will be worth roughly $320m.
Palm, which began life in 1992 as one of the companies at the forefront of the personal digital assistant (PDA), has struggled of late as a result of lagging sales and increasing marketing costs, downgrading sales estimates for the current quarter by more than half in March. Palm put itself up for sale earlier this month, amid speculation of offers from Lenovo of China and HTC of Taiwan.
HP said yesterday it has reached an agreement to buy Palm, as part of a concerted attempt by the world’s largest computer maker to make some form of impact in the smartphone market.