A plan to separate BlackBerry’s (BlackBerry Stock Quote, Chart, News, Analysts, Financials TSX:BB) Internet of Things business via an IPO is getting thumbs up from at least one analyst.
In an October 5 note to clients Raymond James analyst Steven Li said “we see the separation as a positive”, adding that the IoT segment was “being masked by the ongoing struggles and churn in the cyber segment”.
On October 4, BlackBerry announced its intention to divide its Internet of Things and cybersecurity businesses via an initial public offering.
“The board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders,” 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.”
On September 28, BlackBerry reported its Q2, 2024 results. The company posted revenue of $132-million, 49-million of which was from its IoT segment. BlackBerry’s IoT business currently secures more than 235-million vehicles, worldwide.
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