: BlackBerry stock rises on announcement of planned IPO of its IoT business

: BlackBerry stock rises on announcement of planned IPO of its IoT business
By: market watch Posted On: October 04, 2023 View: 41

BlackBerry Ltd. shares rose in the extended session Wednesday after the company announced it planned to spin off its Internet-of-Things business in an initial public offering.

BlackBerry BB, -1.84% shares rose more than 5% after hours, following a 1.8% decline to close at $4.27.

In a statement Wednesday, BlackBerry said its board determined that “separating the IoT and cybersecurity business units into two independently-operated entities is the optimal strategic direction for BlackBerry,” adding that the “chief objective of the separation” is launch an IPO for the IoT business in the first half of the next fiscal year.

BlackBerry operates on a February-ending fiscal year.  

Morgan Stanley and Perella Weinberg Partners acted as advisers on strategic alternatives for BlackBerry, the company said.

Recently, BlackBerry earnings met Wall Street expectations, while revenue was a little below what was expected. Of the $132 million that BlackBerry reported in second-quarter revenue, IoT accounted for $49 million, compared with a $79 million contribution from cybersecurity sales.

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