BlackBerry inventory rises on announcement of deliberate IPO of its IoT enterprise

In a press release Wednesday, BlackBerry stated its board decided that “separating the IoT and cybersecurity business units into two independently-operated entities is the optimal strategic direction for BlackBerry,” including that the “chief objective of the separation” is launch an IPO for the IoT enterprise within the first half of the subsequent fiscal 12 months.

BlackBerry operates on a February-ending fiscal 12 months.  

Morgan Stanley and Perella Weinberg Partners acted as advisers on strategic options for BlackBerry, the corporate stated.

Recently, BlackBerry earnings met Wall Street expectations, whereas income was a bit under what was anticipated. Of the $132 million that BlackBerry reported in second-quarter income, IoT accounted for $49 million, in contrast with a $79 million contribution from cybersecurity gross sales.