Report : BlackBerry Might Be Broken Into OS And Patents Divisions
Reuters reports that some potential bidders are looking at breaking BlackBerry apart and keeping only the operating system and the patents around its keyboard.
For several years many investors have been pushing BlackBerry to be split up into several parts: network, device and patents. Unfortunately, something of this nature just might happen.
According to a report in Reuters, several unknown bidders have signed confidentiality agreements and are looking into ways to break the company up into two parts – operating system (BlackBerry 10 and the network assets) and its vast collection of patents, specifically highlighting its keyboard. Possibly vanishing from the plan is its hardware production. However, there is a glimmer of hope as the report states there might be interest from “a Canadian pension fund to team up with an investor to buy the whole company, which is currently worth a little more than $5 billion.”
Reuters notes that “According to analysts, BlackBerry’s assets include a shrinking, yet well-regarded services business that powers its security-focused messaging system, worth $3 billion to $4.5 billion; a collection of patents that could be worth $2 billion to $3 billion; and $3.1 billion in cash and investments. Even at a conservative estimate, that is more than the company’s $5.4 billion market value. Analysts said the smartphones that bear its name have little or no value and it might cost $2 billion to shut the unit that makes them.”
BlackBerry announced in August that it was looking into “strategic alternatives”, including selling itself to help figure out its future. Its market value has fallen to $5.4 billion, from $84 billion at its peak in 2008.