2023-10-13 07:17:00
Earlier this week, BlackBerry (BB.TO) made a major announcement, revealing plans to split its Internet of Things (IoT) and Cybersecurity divisions. According to the news, it is considering a future IPO of the IoT subsidiary in the coming financial year.
BlackBerry thus joins a trend observed among several companies in recent years. In other words, she opted for a leaner business structure. This is to allow investors to evaluate, with greater precision, their distinct activities.
Blackberry is just following the trend in the IoT world
The latest news is that the food industry giant formerly known as Kellogg Co has completed its own spin-off. Companies such as Johnson & Johnson (JNJ.N) in the healthcare sector and General Electric (GE.N) in the industrial sector have also made similar divisions.
John Chen, CEO of BlackBerry, said: “ IoT and cybersecurity businesses face significant and growing market opportunities. The new structure we are proposing aims to strengthen their operational agility and their ability to focus on providing exceptional solutions.”
Following this announcement, shares of BlackBerry, on the United States side, rose more than 4% after the market close. However, stocks saw a drop of more than 18% since Veritas Capital, a private equity firm, announced its offer to purchase the company in August.
Blackberry ends smartphone production
In May, BlackBerry had already announced its intention to examine various strategic options for its business portfolio. Including the possible separation of one or more of its divisions. The previous year she had ended its smartphone production. It has also sought to sell its patents related to this activity.
The company, which went public in 1997, was once famous for its widely used professional smartphones. Its products were worn by leaders, politicians and enthusiastic admirers at the start of the new millennium.
Last week, BlackBerry reported its second quarter results. Result: a total revenue of $132 million. But also a drop from $168 million the previous year.
As for its IoT revenues, they amount to $49 million. Those for cybersecurity, on the other hand, reach 79 million dollars.
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