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clipped from news.com.com

On Monday, Palm said it would sell 25 percent of the company to private equity firm Elevation Partners for $325 million. Elevation Partners was founded by Fred Anderson, Apple's former CFO, and Roger McNamee, who will now sit on Palm's board, replacing Eric Benhamou and D. Scott Mercer. The company also said it would bring on Jon Rubinstein, who formerly ran the iPod division at Apple, as executive chairman of the board.

The deal comes as Palm, which essentially invented the smart phone category with its popular Treo product, tries to regain its position as a leader in an increasingly crowded market. Over the past couple of years, everyone and their brother--from BlackBerry maker Research In Motion to the big handset makers Motorola, Nokia and Samsung--have been introducing so-called smart phones that combine phone functionality with e-mail and Web surfing capability, competing directly against the Treo.

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