Elevation Partners in Palm for the long haul | webOS Nation
 
 

Elevation Partners in Palm for the long haul 30

by Derek Kessler Thu, 07 Jan 2010 1:11 am EST

Elevation Partners

Investment firm Elevation Partners has invested some $460 million into this little company called Palm. Today, that investment has gained around 54% for the firm, and at one time had nearly tripled in value (though has since dropped considerably). So with a gain of around $250 million on the table, now would seem like a good time to take some profits, eh?

Not so, Elevation co-founder Fred Anderson said to Bloomberg, “We haven’t taken money off the table because we see a huge market opportunity here. This is a marathon.”

Given the number of changes that Elevation’s partners have instituted in Palm, from installing Jon Rubinstein as Chairman (and he guided us to the bright land of webOS) to eventually moving him in place as CEO once Ed Colligan retired. Anderson himself even serves on Palm’s board. But what future does Elevation Partners see in Palm? It’s not a takeover, as that potential does not factor into their business model (though it does factor into Palm’s stock price, and thus the value of Elevation’s investment).

What Elevation Partners sees in Palm is expansion, and we expect to see plenty of that later today at CES. At the very least, Palm will announce their partnership with Verizon, and they may even talk some about AT&T and some international carriers. Most of us here will agree that the Pre and Pixi are excellent devices, but whether or not Sprint is excellent service is another question entirely. Expanding Palm’s distribution channels, and eventually the product line, will be the key to growing Elevation Partner’s investment. And that truly is a long-term strategy.

30 Comments

I don't see what's not to like about Sprint's service; the prices are great, and everywhere I've been data and voice we're clear and fast. I'd definitely take Sprint over the others right now.

I agree. Sprint has great coverage and the best value for your money IMO.

There are a lot of people on the outside looking in at Sprint customers getting same or better service for a ton less money. It offends their pride.

Consumer Reports shows that Sprint is #3 in Customer Service. But the best to the worst is covered by the smallest of margins. So its like knocking each other, "My D+ is 1% higher than your D+, you loser." As a whole, the industry is a dismal failure for service. If it's gonna suck no matter what, might as well pay a lot less.

The head of the nail, you hit it!

I'm a recent convert from Verizon. I haven't noticed a difference.

Yup Sprint is where it is at... now if Verizon dropped prices to match them then I would change that opinion but we all know that aint going to happen.

I'm on the same page....have been with Sprint for 8 years and don't plan on leaving any time soon. Service is excellent, and pricing is the best all around.

I guess we can now say Bono has finally found what he was looking for.

Sprint, in my opinion, is the best carrier. Low prices, large coverage, great speeds, first to bring 4g in many areas. It has everything the other carriers does not have.

Anyway,
Who's the guy to the far left? The other guys are listed in the investment team, but the guy on the far left isn't.

The trolls on this forum wont like this at all. =\

+1 for bono

I love sprint.. Great Value.. tops any other company IMO.. especially since they are so good to their loyal long term customers.. at&t and other companies got so many iphone fan boys that they dont have to give a F*ck about your business..

Sprint #1.. dont get me wrong tho, before the palm pre came out i was about to leave sprint, cuz i wanted an iphone type phone.. and then they got pre and i got it and i couldnt be happier and im saving alot compared to what id be paying for at&t and iphone services monthly..

I'll have to agree with the sentiments noted thus far. I don't see Sprint at the problem with Palm. In fact, considering that Sprint is a distant third in the number of subscribers and but has managed to so aggressively market Palm products to the point that Palm as a company is still relevant is nothing short of a miracle. I've been with Sprint since 1999 and would definitely not change carriers now.

As for Palm, I think expanding their distribution channel within the U.S. market and internationally will only help the company's earnings and thus, hopefully, put an end to the rumors of Palm Inc.'s demise.

Furthermore, if Palm wishes to stay competitive and relevant they seriously need to beef up their product line. The Pre and Pixi are excellent products built on a solid user friendly platform. But the company lacks diversity. If Apple and Google can come out with a plethora of products to suit various market needs so should Palm.

I know my ranting may sound a bit critical of Palm, but it's only because I LOVE my Pre and want to see Palm survive to put out bigger and better products!

IMO if sprint had not stepped up their game as far as plans go. We early adapters at sprint would not have seen WebOS shine as bright as it does now. Seriously, how many people would opt for an unlimited everything plan on any carrier just to see the full capabilities of their phone? Sprint gave that to us on a silver platter at a decent price. I can not begin to imagine having a WebOS phone and having to worry and keep track of how much data I've used, or any other feature which is included in sprints everything plans. I'm still blown away by "anymobile anytime".

What language is that ?

As far as Sprint is concerned I've had pretty negative experiences with them. Their technical support is awful and their customer service is hit-or-miss at best. Yes, they have a pretty good network and yes their plans are quite good but I don't get reception in my home or office so I dropped them.

As far as Palm is concerned, I really hope they succeed because WebOS is brilliant and, despite hardware issues with the Sprint Pre, I like the hardware designs.

Exclusive contract with SPRINT?
For better or worse, it's about VERIZON and at&t (well, that's before the iphone exclusivity ends...)

I had Sprint when it first came out in the 90's, I think it was 98, and it was great in the SF Bay, then right around 2001 it turned to garbage and was horrible. I have many friends who have switched back to Sprint over recent years and have heard great things about it now. And now with the Pre, and cheap any cell family plan I can't wait to switch my 4 phone Metro PCS family plan to Sprint.

Amen that! I'm in Orlando and Sprint was horseshit early in this decade! But they have come back strong! I so rarely have a problem. Admittingly I've been considering jumping ship due to phone choices but I'm stickin' with both Palm and Sprint...

I wonder if Bono ever actually takes those shades off, or if they're glued to his face... Yay for Bono though.

I wonder the same thing about Rubenstein and his shirt.

As an official Build Quality (TM) troll I have to say I am glad Elevation has made profits on Palm, and I am glad they will leave their profits in place so they can hopefully be used to improve Build Quality (TM) on existing and future Webos products. Come to think of it Webos sounds a little like guevos, which is balls in spanish... You have to have balls to release such a bad Build Quality (TM) product as the Palm Pre. Did I say I hope it gets fixed? Ok, read the next post...

Do people really pronounce "WebOS" in two syllables? I'd have thought people would pronounce it in three syllables - "Web-O-S" as short for "Web Operating Systems".

It's the build quality of the acronym that really holding Web O S back.

I don't know healey, but it sounds like Webos, which could also be pronounce juevoes, or guevo es, or ese guevo es needs the best hardware Palm can pump out. So, mi guevo and my Palm go together like two peas in a pod...

I've bee with Sprint for 11 straight years and am very happy also. They HAVE gotten better. It only seems like a good thing for Palm to expand though.

I really don't understand why sprint is put-down so much. Yes, they did develop really bad customer relationships in the early 2000's, but it has definitely changed. I have had the service for years and travel all over the country. In those areas where I used to have somewhat spotty coverage, I've notice in the last few years those areas are almost gone. My service has been excellent on both the phone-now a Pre- and using a datacard in my laptop... if it wasn't I would change! Frankly my peers who have ATT have more problems than I have ever had, especially with generating DTMF tones for controlling devices. On the Pre, yes the build could feel a little more solid. I was early adopter and the screen did finally crack. It was replace and the new phone does feel a little more solid. Other than perhaps a more solid feel, I love this phone. Feels great in my hand and fits in my pocket without creating a large lump.

In the last ten years, how many times have I read that exact same 'commitment' language followed quickly by a liquidity event? So many that I can do the substitution in my head...

What they said...

I left Sprint for Verizon in 2000 because I work in the tri-state (Ca, Nv and Az) and back in 2000 whe I was with Sprint, whenever I would leave the greater LA area, I was roaming, not acceptable for anyone who travels alot. I came back to Sprint last June and was really impressed with Sprint's service and coverage, just the same, if not better than Verizon for me where I live and work.

Bono - well, better than Kanye