Bono, lead singer of Irish supergroup U2, is set to face a loss of $140 million after Palm announced a $1.2 billion deal to sell itself to personal computer giant Hewlett-Packard.
It's not such a beautiful day, huh?
Bono’s private equity venture, Elevation Partners, owns an approximate 30 percent stake in Palm, having invested $460 million in the struggling personal handset maker in 2007 and 2008.
The H-P deal values Palm’s equity at $961 million – and the rest of the deal price is debt – meaning Elevation’s stake will be worth roughly $320 million, press reports confirm.
Palm has struggled in recent years as a result of suddenly lagging sales and increasing marketing costs, downgrading sales estimates for the current quarter by more than half in March.
H-P said late on Wednesday it has reached an agreement to buy Palm, as part of a concerted attempt by the world’s largest computer maker to make its presence felt in the smart phone market.
Seems like the legendary front man may be stuck in a moment he can't get out of. Yet.