BlackBerry recently appointed John Giamatteo as its new CEO. In addition, the security and IoT specialist has decided to call off a proposed IPO of its IoT division.
BlackBerry recently appointed John Giamatteo, the current director of the cybersecurity division of BlackBerry, as its new CEO. He succeeds John Chen, who retired last November. He has been the CEO of the company since 2013. Chen’s arrival then saved the company from collapse.
Proposed split-up
Things have been rumbling at BlackBerry for some time. Due to disappointing operating results, Project Empire was launched in May this year to determine a new future for BlackBerry. The study found that splitting the company into a separate IoT and security company was the best solution. This was to be achieved through an IPO of the IoT business still scheduled for 2023. The IoT business is primarily engaged in providing basic high-performance software for the automotive and other industrial sectors.
According to the report, a separate IoT business would give shareholders more insight into the company’s performance. This is especially true if this business unit can determine its own strategy in the future and provide its own required capital.
Blowing off the IPO for the IoT division
With the arrival of John Giametteo as the new CEO, the plans for the IPO of the IoT division were immediately put on hold. However, the security and IoT specialist does plan to transform both business units into two completely independent operating divisions. In addition, cost savings have been announced so that both divisions will become profitable in the future and get a positive cash flow.
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