Irish rocker Bono is feeling the effects of the struggling economy thanks to his multi-million dollar investment in smart telephone maker Palm Inc. - stock shares have plummeted a staggering 35 per cent since January (10).
In December 2008, bosses at the U2 frontman's Elevation Partners company announced they would make the investment to save the debt-riddled firm, the maker of Treo and Centro smart phones, as it prepared to introduce new products.
Elevation Partners, a California-based private-equity business, which counts Bono as a managing partner, pumped nearly $500 million (£312.5 million) into the company.
However, stock shares plummeted 19 per cent on Thursday (25Feb10), amid reports Palm is losing ground against gadget-making rivals Apple and Research In Motion (RIM). Shares have now dropped a total of 35 per cent since January (10), reports the New York Post.
Ironically, analysts suggest Bono's appearance in commercials for Palm's rival, RIM's BlackBerry, last summer (09) could have worked against his own investment.
The firm's executives initially predicted up to $1.8 billion in sales for the year ending in May (10). However, analysts now predict results will be "well below" that, with sales figures for the December-to-February period expected between $100 million (£63 million) to $310 million (£193.8 million).
But Chief Executive Jon Rubinstein is playing down the loss. He says: "Driving broad consumer adoption of Palm products is taking longer than we anticipated."