BB - BlackBerry considers breakup of businesses as it explores strategic alternatives

2023-05-01 17:50:12 ET

BlackBerry ( NYSE: BB ) will conduct an assessment of its portfolio of businesses and consider whether to separate one or more of them in order to maximize shareholder value, the Canadian cybersecurity firm said on Monday.

The company has retained Morgan Stanley and Perella Weinberg Partners as financial advisors to assist in the review of a possible business breakup.

"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. 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," said executive chairman and CEO John Chen said .

BlackBerry's patent sale transaction, which it announced late March, is unlikely to fetch $900 million, Seeking Alpha contributor and leader of the " Beat Billions " investing group Dilantha De Silva wrote in a recently published analysis .

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