Palm to Sell 25 Percent Stake To Elevation, For $325 Million

Elevation will invest $325 million for that stake...Palm will pay $940 million in cash to existing shareholders whose ownership of the company will drop to 75 percent, the story says. The company will fund the restructuring with the $325 million from Elevation, $400 million in new debt and more than $200 million of cash on its balance sheet to complete the transaction.

Jon Rubinstein, Apple’s former head of hardware who helped pioneer iPod, will join Palm as executive chairman and head up product development. Fred Anderson, a partner at Elevation and a former Apple CFO, will join Palm’s board, as will another Elevation partner, Roger McNamee. Palm’s longtime chairman, Eric Benhamou, and another director, Scott Mercer, will leave the company’s board. You can read the full story at Moconnews

Via Engadget Mobile