BlackBerry has announced plans to draw a line between its IoT and cybersecurity businesses, as it looks to become two independently operating entities.
The iconic Canadian company, once famous for its business smartphones, said the move would reflect the company’s “optimal strategic direction.”
The company’s board and its advisors indicated earlier this year that a “comprehensive review” of BlackBerry’s portfolio would be necessary to “evaluate opportunities” in hopes of increasing shareholder value and the company’s profitability.
BlackBerry announces plans to split in two
a press release confirms: “The main purpose of the separation is to pursue a subsidiary for the IoT sector, the market leader in high-performance, safety-critical foundational software in automotive and other industries, with a launch targeted for the first half of 2019. the following financial year.”
BlackBerry retired its mobile operating systems in January 2022, essentially pulling the plug 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 security-critical institutions secure the Internet of Things.
Company CEO John Chen said: “Both the IoT and Cyber companies have leading technology and talent and are addressing large and growing market opportunities. This new proposed structure will further enhance both their operational flexibility and their ability to focus on delivering exceptional solutions to their customers.”
BlackBerry has not yet shared information on a time frame for the split and if or how customers might be affected, but investors seemed happy with the news. In post-market trading, shares rose about 4%, although they remained low after private equity firm Veritas Capital made an offer to buy the company earlier this year.