Proactive Investors - Blackberry (TSX:BB) announced Wednesday that it plans to spin off its Internet of Things (IoT) and cybersecurity business units.
The plan would then be to move forward with a subsidiary initial public offering (IPO) for the IoT business during the next fiscal year.
The company reported its second-quarter results last week, posting IoT revenue of $49 million and cybersecurity revenue of $79 million out of a total $132 million.
"Both the IoT and Cyber businesses ... 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," CEO John Chen said in a statement.
Blackberry is the latest company to publicly explore spinning off business units as a means of unlocking shareholder value.
Earlier this week, Intel Corporation (NASDAQ:INTC) said it plans to spin out its programmable chip division as a standalone business starting in January and ultimately hold an IPO within three years.
Others have already completed demergers.
Novartis (LON:0QLR) has just completed the spin-off of Sandoz (SIX:SDZ), its generics and biosimilars business.
Kellogg has done the same, hiving off its cereal business into WK Kellogg Co this week, and renaming the remaining snacks and frozen food business Kellanova.
In Blackberry’s case, the company said in May that it would consider strategic options for its portfolio of businesses that could include possible separations.
In 2022, the company sold its legacy mobile and messaging patents for $600 million.
Read more on Proactive Investors UK