PalmGear Enters Into Agreement With PBH Holdings
PalmGear has announced in a letter to its partners that it has entered into an agreement with PBH Holdings. PBH Holdings is providing to PalmGear secured bridge financing which enables PBH to direct their operations, finances, development, planning and strategic marketing.
Previously, PalmGear has been behind in payments to its partners, the people and companies for whom PalmGear acts as an online reseller. In June of this year they initiated a policy that has resulted in all current sales being paid current. It had made plans to catch up with the payments owed to developers and this is another step in that process.
The text of the email sent to developers is as follows:
First, let me start by saying how much we at PalmGear appreciate you and value the relationship we have. PalmGear would not have become the number one exclusive Palm OS site for application and content distribution without the PGHQ Partners. You have supported us throughout an unusually difficult time over the past few years. Your commitment and belief in us has not gone unnoticed and will be rewarded. We have successfully endeavored to create the number one site for application and content distribution in the Palm OS industry, while at the same time maintaining a personal, successful relationship with our customers. We are coming through a difficult time and are excited for what the future holds for PalmGear.As many of you are aware last year we successfully won an extremely costly and protracted legal battle brought against PalmGear by Q Ventures, one of the initial investors in Handango. We defended ourselves to maintain the community we created for the Palm OS developer and user in kind. Even though we successfully defended ourselves in this litigation we unfortunately did not receive any reimbursement of the 7 figure plus in legal fees incurred nor were any damages paid to us. With the legal challenge behind us we were finally able to pursue a strategic financial and management relationship to address the financial condition of PalmGear and develop an aggressive marketing and development strategy.
Effective October 1 of this year, we are pleased to announce that we have entered into an agreement with PBH Holdings. PBH Holdings is providing to PalmGear, among many other things, secured bridge financing which enables PBH to direct our operations, finances, development, planning and strategic marketing. We believe that this relationship will enable us to enhance and expand our leadership position. Additionally, this will allow me personally to concentrate on the developer relationships and ideas to continue the growth of PalmGear. We are confident that you will see many positive changes in PalmGear that will not only enable us to continue to be number one in the industry, but will also enhance our service to our PGHQ Partners, our customers and the PalmOS community in general.
We appreciate your patience in this transition. More news and information will be forthcoming. Again, we look forward to continuing a successful working relationship with you.
Regards,
Kenny West
PalmGear.com
PalmGear, which once virtually owned the Palm software market, has recently faced intense competition from Handango and others. Late last year it was dealt a blow when Handango took over hosting the Palm Software Connection, the section on Palm's own website that lists third-party software. PalmGear had previously been responsible for this. There is also a growing number of royalty free Palm OS software listing sites.
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RE: A big step in the right direction.
With the old method, if PalmGear had been going under, they could have collected money for a long time, not paid any out to anyone, and then go under.
As a developer, I felt much better about PalmGear after this change was made. (Even though, at the time, PG was heavily bashed in PIC for this change.)
Why can't there be one comprehensive list?
Heck, even PalmSource's own list at http://applications.palmsource.com/Software/index.asp doesn't include one of my favorite apps---WordBox.
The lack of a single comprehensive website listing all software titles -- free, pay and otherwise -- is a major limiting factor in the success of the Palm Economy (tm). While I don't wish ill will on PalmGear or any other company, until there is a master catalog all of the various Palm software sites will suffer.
Palm Researcher at the University of Texas at Austin
http://www.edb.utexas.edu/petrosino/pda
RE: Why can't there be one comprehensive list?
Such a list would be nice, but I'm personally very happy with what's available now.
-Davy Fields
http://nr70.davyfields.com
RE: Why can't there be one comprehensive list?
It is a little decieving though.
Only about 100-500 are worth their price.
Maybe new OS's will bring better software.
Roman Pedan
Palm V/Vx
Will get a Palm OS 5 handheld
RE: Why can't there be one comprehensive list?
RE: Why can't there be one comprehensive list?
If there was one comprehensive list and a "click-n-run" interface, novice Palm users (such as those who buy the Zire) could access these 15,000 applications. Right now, most Palm users only use the built-in applications.
Palm Researcher at the University of Texas at Austin
http://www.edb.utexas.edu/petrosino/pda
RE: Why can't there be one comprehensive list?
Roman Pedan
Palm V/Vx
Will get a Palm OS 5 handheld
RE: Click-n-Run
RE: Why can't there be one comprehensive list?
Hope I didn't go too far off topic...
_____________________________
Phew! Whats that smell!?! Did someone Zire in here? Buy Palm stock...it's only a nickle.
RE: Why can't there be one comprehensive list?
Ask a novice user to try and install and application on their Palm. Believe me, those steps you described (which most of us tech-experts on this site regard as trivial) challenge tech neophytes.
Palm Researcher at the University of Texas at Austin
http://www.edb.utexas.edu/petrosino/pda
RE: Why can't there be one comprehensive list?
That would be a killer new-user app!
--
Ben Combee, CodeWarrior for Palm OS technical lead
Programming help at www.palmoswerks.com
RE: Why can't there be one comprehensive list?
PalmGear, wanna hire me to build your custom AvantGo channel? :-)
Palm Researcher at the University of Texas at Austin
http://www.edb.utexas.edu/petrosino/pda
Wait and See
Hope they got the money...
I've even praised their great service.
But I hope those developers get their money. To jerk around someone like that isn't good.
Let's hope this change is a step in the right direction.
strider_mt2k@yahoo.com
RE: Hope they got the money...
Thank you for your response to my email earlier this week. Our first
priority with PalmGear is to deal with the past financial obligations. PBH
Holdings efforts will be to financially restructure PalmGear, keep it
current with regard to its monthly financial obligations post June 1, 2002
and look for opportunities to further ensure the financial well being of
PalmGear and its developer/partners.
You have the option as set forth below to be paid in full. Unfortunately,
due to the current financial situation of PalmGear, the only way for that to
occur is through an extended payment plan.
As referred to in my email to you, we have three different payment options
for you to select from, any of which will settle PalmGear's obligation to
you, as paid in full, with regard to the outstanding balance due you. This
will only apply to balances owed prior to June 1, 2002. All monthly
balances incurred post June 1, 2002 will remain current. Those options are:
· Cash payment equal to 20% of the Trade Receivable payable on December 15,
2002.
· Cash installments equal to 50% of the Trade Receivable paid in equal
monthly instalments over fourteen (14) months beginning on January 15, 2003.
· Cash installments equal to 100% of the Trade Receivable paid in equal
monthly instalments over thirty-six (36) months beginning on January 15,
2003.
PBH retains the right to rescind the agreement on or before November 29,
2002 in the event that we do not obtain the assignment or waiver of at least
fifty percent (50%) of PalmGear trade liabilities.
Please indicate by November 1, 2002 the option you agree to on the following
assignment by checking the appropriate box, sign in the space provided and
fax to (615) 467-6165. We appreciate your participation in this matter and
look forward to a successful future together.
Yours truly,
Nathan A. Gooden
CFO
PBH Holdings, LLC
RE: Hope they got the money...
Thank you for your response to my email earlier this week. Our first
priority with PalmGear is to deal with the past financial obligations. PBH
Holdings efforts will be to financially restructure PalmGear, keep it
current with regard to its monthly financial obligations post June 1, 2002
and look for opportunities to further ensure the financial well being of
PalmGear and its developer/partners.
You have the option as set forth below to be paid in full. Unfortunately,
due to the current financial situation of PalmGear, the only way for that to
occur is through an extended payment plan.
As referred to in my email to you, we have three different payment options
for you to select from, any of which will settle PalmGear's obligation to
you, as paid in full, with regard to the outstanding balance due you. This
will only apply to balances owed prior to June 1, 2002. All monthly
balances incurred post June 1, 2002 will remain current. Those options are:
· Cash payment equal to 20% of the Trade Receivable payable on December 15,
2002.
· Cash installments equal to 50% of the Trade Receivable paid in equal
monthly instalments over fourteen (14) months beginning on January 15, 2003.
· Cash installments equal to 100% of the Trade Receivable paid in equal
monthly instalments over thirty-six (36) months beginning on January 15,
2003.
PBH retains the right to rescind the agreement on or before November 29,
2002 in the event that we do not obtain the assignment or waiver of at least
fifty percent (50%) of PalmGear trade liabilities.
Please indicate by November 1, 2002 the option you agree to on the following
assignment by checking the appropriate box, sign in the space provided and
fax to (615) 467-6165. We appreciate your participation in this matter and
look forward to a successful future together.
Yours truly,
Nathan A. Gooden
CFO
PBH Holdings, LLC
A Vote of Confidence
best wishes to PalmGear. While surrendering some ownership control can't be an easy thing to swallow, it's no doubt a decision Kenny and PalmGear
can live with. I applaud his continued efforts in enlisting help of this magnitude to ensure that PalmGear H.Q.s' business concerns
are indeed "ongoing". I believe this step will help elevate the pervasive sense of confidence in PalmGear among the consumer and developer communities.
Best of Luck,
Mead
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A big step in the right direction.
Let's hope they continue on this path. Really, things like this are better as a "scared monopoly." I like my search engines and software portals to be comprehensive, but also afraid of maintaining their dominance so they will continue to kiss my butt. :-)