BlackBerry plans IPO for its Internet of Things business
Morgan Stanley and Perella Weinberg Partners, and they concluded that an IPO was the best option for the IoT business, the company said. The Internet of Things market is focused on infusing online capabilities and sensors into appliances, cars and everyday items.
Investors applauded the move, sending the shares up more than 5% in late trading on Wednesday. The entire company currently has a market valuation of about $2.5 billion.
“BlackBerry believes that a separately traded IoT subsidiary will enable shareholders to more clearly evaluate the performance and future potential of BlackBerry’s principal businesses on a standalone basis, while allowing each business to pursue its own distinct strategy and capital allocation policy," the Waterloo, Ontario-based company said. Blackberry, the phone giant turned security software provider, announced the review in May, and uncertainty around the process has compounded concerns about the company’s financial performance.
Veritas Capital has been seen as a possible suitor for BlackBerry. Bloomberg reported in August that the private equity firm was contemplating making a bid for the whole company."Exciting news! Mint is now on WhatsApp Channels
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