1 Green Flag and 1 Red Flag For BlackBerry's IoT Spinoff
Back in May, (NYSE: BB) said it was conducting a strategic review that could lead to the possible separation of one or more of its businesses. During its latest conference call in late September, CEO John Chen said there was a "50-50 chance" it would complete that review before his contract expires in November.
That's why it wasn't too surprising when BlackBerry recently revealed it would spin off its Internet of Things (IoT) unit in an IPO next year. The IoT unit will be operated independently from BlackBerry's remaining cybersecurity division after its IPO, but it will remain a publicly traded subsidiary of BlackBerry. In addition to generating some fresh cash, management believes that an IPO will enable BlackBerry's investors to "evaluate the performance and future potential of BlackBerry's principal businesses on a stand-alone basis while allowing each business to pursue its own distinct strategy and capital allocation policy."
Image source: Getty Images.
Source Fool.com
