Friday, November 27, 2009, 8:25PM ET - U.S. Markets closed early today.

Why Elevation Partners Invested $425M in Palm

Posted Jan 16, 2009 02:53pm EST by Sarah Lacy in Investing, Computers, Electronics, Products and Trends, Recession
Roger McNamee of Elevation Partners is a well-known investor in both Wall Street and Silicon Valley. But two years ago, when he invested 20 percent of his private equity fund in smart phone has-been Palm, even his biggest fans were doubters.
 
At last week’s Consumer Electronics Show, he could finally show the world why. Palm’s new Pre aims to upend the smart phone market by designing a radically different device, that’s not based on a PC architecture. Few reviewers have gotten a full run at vetting it, but so far the critics have been ga-ga.
 
In our final clip with McNamee, he takes us back to the time of his Palm investment, describes that “Sally Field” moment at CES, and gives us a quick walk through his new favorite gadget. 

54 Comments

Reedersong
Reedersong - Friday January 16, 2009 03:13PM EST

WE LIKE IKE

Yahoo! Finance User
Yahoo! Finance User - Friday January 16, 2009 03:17PM EST

Holy utility belt, Batman!

__A_YAHOO_USER__
__A_YAHOO_USER__ - Friday January 16, 2009 03:32PM EST

Who needs it Palm and other new technology this time....... Most people now is savings for rainny days to come........Security first on the pocket and wallet is important........If it is whisky may be people wants it for pleasure and happiness....One shot a day after dinner is good.......Cheer........When all people became better in their wallet may be,We been tempted.......Do not be a devil....No temptation please........

Yahoo! Finance User
Yahoo! Finance User - Friday January 16, 2009 03:35PM EST

I’m with Johnny Ike. Whiskey looks like a good buy. Bonanza, too. I don’t see much out there other than those…

Yahoo! Finance User
Yahoo! Finance User - Friday January 16, 2009 03:38PM EST

MONEY IS THE ROOT OF ALL EVIL! we human beings will never learn from our greed & mistake... and will never change.

siroptimistic
siroptimistic - Friday January 16, 2009 03:38PM EST

No one needs another handheld device with software that does a lot of obscure and irrelevant things. This is an example of software created that does not solve any real problems in the lives of people.

Yahoo! Finance User
Yahoo! Finance User - Friday January 16, 2009 03:50PM EST

I heard at least one bank, one of the straonger ones, is going to give bonuses. Bonuses were off the table before TARP. Thanks Hank!

Art
Art - Friday January 16, 2009 04:06PM EST

Why will we need on if we are out of work?

Yahoo! Finance User
Yahoo! Finance User - Friday January 16, 2009 04:24PM EST

When Palm gets through a couple of Q of increased revenues, watch it closely and then buy put options up the wazoo near the top. Elevation Partners and all these guys are not stupid, they will be selling close to the top and making their cash. Palm couldn't survive in a good economic environment and will do worse this time around. Their device looks like a HTC wannabe. Ride it on the way up and then short like crazy...

John A.
John A. - Friday January 16, 2009 04:37PM EST

Yahoo! Finance User makes a very smart case. When are we going to realize that trickle-down solutions don't trickle down? Three simple things might turn this nonsense around: 1. All financial bailout money goes to paying off debt at the bottom -- credit card bills and mortgages. 2. The auto company loans are paid in the form of low interest government car loans to pay off existing ones or to buy new American cars. 3. Instead of the government buying more digital converters with a cushy supplier deal, give everybody with an analog TV a $100 coupon to buy a brand new digital TV and stimulate the economy. No bigscreen. No flatscreen. Just a plain ole little TV. Last time I checked, watching Oprah wasn't in the Bill of Rights. Let's start there and see what happens. Somebody tell O about his, Ok?

Will
Will - Friday January 16, 2009 05:25PM EST

http://www.investorsunderground.com they killed the calls today, made a lot of money!

Nick
Nick - Friday January 16, 2009 05:44PM EST

REMEMBER THA ALIMO ??? REMEMBER THA PHONE BOOTH ??? REMEMBER MA BELL AND AH $9.00 AH MONTH PHONE BILL ??? REMEMBER THA OPERATOR SAYIN , NUMBER PLEASE ??? REMEMBER GREEN ACK ERS ??? PARTY LINE ??? THA GREAT DEPRESSION ???

blank
blank - Friday January 16, 2009 06:00PM EST

The Pre sounds stupid and is stupid. Its over and mac will lose his shirt if he doesnt sell out fast who is going to buy out palm to save his ass?

a
a - Friday January 16, 2009 06:20PM EST

I think people will continue to spend on cellular devices. http://www.pennymarkets.com to vent about TARP!

Robert
Robert - Friday January 16, 2009 07:20PM EST

Wow, that guy is annoying.

san
san - Friday January 16, 2009 09:04PM EST

For those that don't get it, why the phone is different, it predicts your needs. What they are missing is a catchy trademark name for it that customers can recognise and that they can licence. Like Bluetooth, how many people say "does it have bluetooth? I need a phone with bluetooth!". They could be saying "does it have Intelegence?, I need a phone with Intelegence!"

Malcolm
Malcolm - Friday January 16, 2009 10:42PM EST

I was born in 1925 and I remember that part of the great Depression which was between 1932-1938. People lined up on a main street in my town to get soup and some bread. Lots of people in my extended family were out of work. Will we repeat that now? I don't think so. What's different. Technology. around the world there are about a hundred times as many scientists busy discovering and inventing as there were then. Discoveries (of newly uncovered scientific facts) lead to inventions. Inventions lead to new industries. e/g/ renewable energy, nanotechnology. etc.,

Sheffy
Sheffy - Saturday January 17, 2009 03:24AM EST

I think its gonna worth all the penny cos its an investment in the right direction. People are always on the move and keeping in touch with your investment is very vital.

L
L - Saturday January 17, 2009 03:32AM EST

Anybody here loading up on UVSE.OB? I've read in several places where it's mentioned as the Baby Exxon.

DumbBRIT
DumbBRIT - Saturday January 17, 2009 03:33AM EST

Did you guys see THIS? The BUSH admin has been giving the RICH guys MORE TAX breaks. Good for OBAMA to TAKE these TAX breaks for BANKERS away! I am SOOOO glad BUSH is out! http://news.yahoo.com/s/ap/20090117/ap_on_go_co/stimulus_taxes House Democrats' version of the $825 billion recession rescue package would END billions of dollars in tax breaks the Bush administration quietly gave to banks last fall. Already almost exclusive beneficiaries of a $700 billion Wall Street bailout, banks are largely left out of the House stimulus package that President-elect Barack Obama wants passed quickly through Congress. Those getting financial bailout money wouldn't even be eligible for one of the main business tax breaks. Good for OBAMA! Maybe their REALLY will be some positive CHANGE in the way the RICH get special deals and the REGULAR guy get SCREWED!

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