Sony Invests $20 Million In Palm

In addition to the minority equity investment, Sony also agreed to widen its technical and business collaboration with Palm.

As a result of the deal, Sony now owns a 6 percent stake in PalmSource, Palm's software unit.

Palm already has internally separated PalmSource. Next year, the separation will become external, with existing Palm shareholders receiving shares in the new division.

Earlier this month, Sony unveiled an updated model of its Clie handheld, which runs on the Palm Operating system. Among other features, it records video, plays music and browses the Internet via a wireless connection.

Shares of Palm gained 6 cents to close Tuesday at 67 cents on the Nasdaq Stock Market.

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