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
deal price is debt, meaning Elevation’s stake will be worth roughly
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.