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Palm Bailout

6:15 PM -- So, you remember Palm Inc. , right? The company that blazed a trail for the handheld device market and then got somewhat left behind when we all moved to smartphones.

I kid, of course, but only to a degree. VC firm Elevation has given them another $100 million, y'see. That's after the $325 million has firm has already pumped into Palm.

"We believe that Palm is in a position to transform the cell phone industry, and we are pleased to have the opportunity to make this additional investment in the company," said Roger McNamee, co-founder of Elevation Partners, in a statement. "Palm has an industry-leading team and an exciting, differentiated product road map."

Really? I mean let's hope the "Nova" operating system -- due to be shown off at CES -- is all that. The evidence of recent Palm developments like the Companion leaves me a little skeptical, however.

2009 is going to be a brutal year, even for cellphone companies used to living high on the hog; they're going to be looking to squeeze costs wherever they can, including operating system costs. Plus Apple Inc. (Nasdaq: AAPL) and Android spell competition with a capital "A" for Palm. Maybe Google (Nasdaq: GOOG)'s operating system can raise all boats in the market, but I doubt it.

— Dan Jones, Site Editor, Unstrung

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