Palm Inc. sells a quarter of the company

Palm Inc. sells a quarter of the company

Smartphone manufacturer Palm Inc has confirmed that they are selling a quarter of its company to a private equity firm.

The company would now get a new leadership as Elevation Partners has agreed to invest $325 million in Palm Inc.

Palm is facing intense competition in the US market as Apple is scheduled to launch their iPhone later this month.

Motorola also aims to become a competitive player in this segment as they aim to take on the market leaders Nokia.

Market analyst Tim Bajarin, president of Creative Strategies had this to say on this announcement: “This is great for Palm, and it was probably the right time to bring in a change in top leadership. They needed a significant cash investment to take it to the next level and a partner who had the same vision.”

Elevation partner McNamee said in an interview on this deal: “We don’t think Palm is faltering or that there’s anything wrong with the present. We just think the future is incredibly bright.”