BlackBerry prepares to spin off its Internet of Things business

In May of this year, based on a strategic assessment conducted by Morgan Stanley in partnership with Perella Weinberg, it was postulated that BlackBerry would benefit from segmenting its operations into two distinct entities: one focused on the Internet of Things (IoT) and the other on cybersecurity. Subsequent to this assessment, BlackBerry anticipates demerging its IoT segment and seeking its public listing in the first half of fiscal year 2024.

BlackBerry contends that this demerger will allow for a sharper concentration on its cybersecurity ventures, simultaneously providing investors with a clearer perspective on the performance and potential of the company’s core operations.

The newly separated IoT division is slated to stand as an independent entity, with plans to be publicly listed within the first half of BlackBerry’s 2024 fiscal year.

Historically, BlackBerry has been synonymous with its iconic phones boasting a complete QWERTY physical keyboard and proprietary security technologies. These defining features once rendered BlackBerry the coveted choice among many business professionals and governmental agencies. However, as the smartphone market burgeoned, BlackBerry’s inability to recalibrate its business strategy in a timely manner left it overshadowed by tech giants like Apple and Google.

Though BlackBerry later endeavored to recapture its footing within the smartphone landscape, it ultimately opted to demarcate its mobile phone business. Refocusing on cybersecurity and IoT, BlackBerry also fostered collaborations within the automotive sector, partnering with industry leaders such as BMW, Bosch, Continental, Honda, Mercedes-Benz, Toyota, Volkswagen, and Volvo.