SANTA CLARA, Calif.—Palm Inc.’s stock rose sharply in heavy trading after the company announced a new ad campaign and the resignation of its Chief Executive Officer Carl Yankowski.
Palm’s stock jumped about 20 percent in trading Friday to about $2.80 per share, which is much better than the company’s 52-week low of $1.35 per share but way off the $100 per share the company commanded after its initial public offering early last year.
Palm said it has begun the search for a new CEO, and that its Chairman of the Board Eric Benhamou will serve in Yankowski’s place until a permanent replacement is named.
Yankowski did not announce his future plans but said that, with Palm’s transition into two individual businesses almost complete, his role has changed and no longer “matches my aspirations.” Palm is separating its business into operating system and device manufacturing divisions.
While Palm products have been holding their top spot in the personal digital assistant market, according to new reports from Gartner and Jupiter Media Metrics, the company has suffered through sluggish sales and falling stock prices. Palm was also criticized for not releasing its highly anticipated wireless integrated device, citing the sluggish economy for its decision.
Separately, Palm said it was launching a new ad campaign, beginning with TV spots and extensive online ads that focus on the day-to-day uses for Palm devices.
