Bono's company 'Elevation Partners' has lost $140 million in their investment in smart phone company PALM,including $50 million in the third quarter of last year.

The troubled Silicon Valley company announced their revenue was down from estimates of $316 million to just $150 million in the quarter.

"Our recent underperformance has been very disappointing, but the potential for Palm remains strong," Palm CEO Jon Rubinstein said in a statement.

Elevation owns 42 per cent of the company or close to 68 million shares. The stock price now is down to just $7 a share from $18 when they bought it.

PALM's financials anounced today were even worse than people expected and the question will be whether Elevation, will continue to invest in PALM or take their money elsewhere.

Either way for Bono is it bad news for an investment in a company that at one point looked like a stroke of genius as their new smart phone debuted to great reviews. However, consumers have not followed on and bought many of the devices.