Last month, a deal was announced under which a private equity firm, Elevation Partners, will be buying 25% of Palm, Inc. for $325 million. For this to go through, though, the agreement required the approval from the Federal Trade Commission.
The FTC has now signed off on the deal, and it will likely be concluded before the end of this year.
Changes, But Not Big Changes
As part of this deal, Jon Rubinstein, former head of the iPod division at Apple, will join Palm as executive chairman of the board. Rubinstein will lead the company’s product-development efforts.
Fred Anderson and Roger McNamee, managing directors and co-founders of Elevation, will also join Palm’s board of directors. Rubinstein, Anderson, and McNamee will replace Eric Benhamou (the current chairman of the board) and D. Scott Mercer.
"As a result of this transaction, we will strengthen the Palm leadership team and create a more effective capital structure, which puts us in a great position to attract new talent, significantly strengthen our execution capabilities, and deliver long-term shareholder value," said Ed Colligan, Palm president and chief executive officer.
Via the Associated Press