BlackBerry is going to split itself into two separate companies: one for its security business and one for its IoT ventures. The latter new company may go public next year.
BlackBerry, once started as Research in Motion (RIM), has decided to split its operations into two separate companies. One new company will focus on current security work, the other on IoT activities.
Reason for the split, according to the security and IoT specialist, is the strategic advantage that two separate entities can offer. BlackBerry came to this realization after a recent review of its business portfolio, codenamed Project Imperium.
Good for shareholders
The main conclusion drawn from this study was that it was best for the IoT unit to be spun off. This division is primarily engaged in providing basic high-performance software for the automotive industry and other industrial sectors.
A separate IoT business would give shareholders more insight into the company’s performance, according to the report. This is especially the case if this business unit can set its own strategy in the future and provide its own needed capital. The demerger and an IPO, likely to follow in 2024, should help in this regard.
Security plans still unknown
BlackBerry is not disclosing any further plans as to how the security company will operate after the demerger and what strategy it will pursue. New information about Project Imperium will not be released until the separation process between the two entities is complete.
Also read: Kaspersky: ‘Hackers increasingly active in IoT device market’
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