BlackBerry has announced plans to draw a line between its IoT and cybersecurity businesses as it looks to make them two independently operated entities.
The iconic Canadian company, once famed for its business smartphones, said that the move would be reflective of the company’s “optimal strategic direction.”
The firm’s board and its advisors indicated earlier this year that a “comprehensive review” of BlackBerry’s portfolio would be needed to “evaluate opportunities” in the hope of driving shareholder value and company profitability.
BlackBerry announces plans to split in two
A press release confirms: “The chief objective of the separation is to pursue a subsidiary initial public offering for the IoT business, the market leader for high-performance, safety-critical foundational software in automotive and other verticals, with a launch targeted in the first half of the next fiscal year.”
BlackBerry decommissioned and effectively pulled the plug on its mobile operating systems in January 2022 after failing to keep up with competition from iOS and Android. The company is now a self-proclaimed leader in cybersecurity, destined to help businesses, government agencies, and safety-critical institutions secure the Internet of Things.
Company CEO John Chen said: “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 has not yet shared information about a timeframe for the split or if and how customers may be affected, but investors appeared to be happy with the news. After-the-bell trading saw shares rise by around 4%, though they still remain down after private equity firm Veritas Capital made an offer to buy the company earlier this year.