Palm sells stake to Bono, recruits ex-Apple execs

Though the headline might read like an April Fool's prank, it's not: Palm has announced a plan to sell a 25 percent stake in the company to Elevation Partners, the private equity firm co-founded by none other than U2 frontman Bono. Bono and friends will pay $325 million for that slice of the pie, a sum which Palm will use to fund reorganization efforts. What's more, following the sale, the company plans to bring two high-profile ex-Apple executives on board: Jon Rubinstein former head of hardware at Apple (known best for his involvement in the design of the iPod and iMac), will head up product development at Palm while finger-pointing former Apple CFO Fred Anderson will join the board of directors. If shareholders approve the deal, current Chairman Eric Benhamou, and board director D. Scott Mercer would step down from their positions at Palm. "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 CEO. While this isn't the buyout that some have been expecting, an infusion of cash and new blood could be just what Palm needs to stage a turnaround.

For more on the deal:
- see this press release