Palm Gets a Major Investor in Harbinger: Is More in Store?
For the noted hedge fund run by Philip Falcone, it's another bet in the wireless industry.
Last month, an affiliate of Harbinger completed its all-cash $262.5 million acquisition of SkyTerra Communications, taking the mobile satellite communications services company private. Harbinger paid a 56% premium over SkyTerra's closing price prior to the merger announcement, which carried a deal value of $1.85 billion.
Although the Palm investment is passive for Harbinger, it would be interesting should Falcone change that status and add the company to his plans to create a massive 4G wireless network with SkyTerra and and his other satellite investments.
With a Palm acquisition, Falcone would be able to move toward offering a soup-to-nuts solution for mobile consumers. SkyTerra intends to offer voice services on phones via its planned satellite and ground-based cellular communications network.
A spokeswoman for Harbinger declined to comment.