BlackBerry Announces Split of Cybersecurity and Internet of Things Business Units

Pappi Hex

BlackBerry Ltd. has unveiled its plan to divide its cybersecurity and Internet of Things (IoT) business divisions into two separate, independently operated entities. 

According to Reuters, the tech company, headquartered in Waterloo, Ontario, is charting a path to a subsidiary public offering for its IoT business as part of its strategic moves to boost shareholder value.

Also Read: Blackberry quites Phone Production after recording $372M loss

Since May, BlackBerry has been diligently exploring various strategic alternatives aimed at enhancing shareholder value, and this decision to split the business units is a significant step in that direction. In the second quarter of the 2024 fiscal year, the company reported a loss of US$42 million. During this period, revenue from IoT experienced a notable uptick of four percent, but cybersecurity revenue saw a dip of 40 percent.

BlackBerry's CEO and Executive Chair, John Chen, highlighted in a press release that this newly proposed organizational structure is expected to bolster operational flexibility for both business units. Each of these units will now be better positioned to pursue its distinct strategies and capital allocation policies independently. This move is part of BlackBerry's ongoing efforts to adapt to changing market dynamics and capitalize on the unique growth opportunities in both the cybersecurity and IoT sectors.

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