Elevation Buys 25% Stake In Palm Inc.

Silicon Valley based Elevation, has purchased a 25% stake in Palm Inc. for a total of $325 million USD. Palm cited the reason for the sale as a need to get the company out of debt and back on track. The purchase by Elevation will cause a drastic change of the Palm hierarchy. Former Apple VP Jon Rubenstein will join Palm as the new executive chairman of the board. The Palm board will also increase in size from 8 to 9 members. The share dividend of the sale is reported to be at $950 million. This move was announced by Palm as far back as June 4, but only recently did the acquisition receive shareholder approval.