BlackBerry Plans To Separate
Posted on 10/06/2023
It’s been a challenging few years for BlackBerry. Once known as the phone provider of choice for U.S. President Barack Obama and many others, the company has struggled to reinvent itself. Earnings have not impressed the market, and now a spin-off is coming.
Given the situation, the company says “The Board, together with its advisors, Morgan Stanley and Perella Weinberg Partners, has been evaluating a comprehensive range of strategic alternatives.” The final analysis came to the following decision: “Based on input from the current process and with the support of management, the Board has determined that separating the IoT and Cybersecurity business units into two independently-operated entities is the optimal strategic direction for BlackBerry.”
John Chen, Executive Chair & CEO said: “The Board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders. Both the IoT and Cyber businesses have leading technology and talent and address large and growing market opportunities. This new proposed structure will further increase both their operational agility and ability to focus on delivering exceptional solutions to their customers.”
BlackBerry provides security software and services to enterprises and governments. Based in Waterloo, Ontario, it offers “innovative solutions in the areas of cybersecurity, safety, and data privacy solutions, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems.”
