Benzinga - Shares of smartphone producer turned software firm BlackBerry Ltd (NYSE: BB) are on the move Tuesday after the company announced a portfolio review.
The Details: BlackBerry said its board will initiate a review of its portfolio of businesses as the company considers various strategic alternatives to drive enhanced shareholder value. Alternatives include the possible separation of one or more of its businesses.
"BlackBerry is executing on a strong, well-resourced plan to deliver revenue and ARR growth, as well as significant improvements in non-GAAP EPS and cashflow this fiscal year," said John Chen, executive chairman and CEO of BlackBerry.
"Although we expect achievement of this plan to deliver significant shareholder benefits, we do not believe that this is fully reflected in the market's current valuation of the Company."
Accordingly, management believes it is the right time to review the company's portfolio of businesses. The board did not set a timetable for the completion of the review process.
BlackBerry also said it will continue with its previously announced sale of approximately 32,000 of its non-core patents and patent applications.
BB Price Action: BlackBerry has a 52-week high of $7.20 and a 52-week low of $3.17.
The stock was up 7.22% at $4.16 at the time of writing, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via MidJourney.
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