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BlackBerry has scrapped its plan to split into two independent companies, including pursuing an initial public offering (IPO) for its IoT business unit. Instead, the Canadian tech giant has chosen to reorganise itself into two distinct internal divisions: one focusing on its cybersecurity strength, and the second on the IoT.
The decision comes after the completion of Project Imperium, a comprehensive review initiated by BlackBerry to chart a course for sustained growth and increased shareholder value. The initial recommendation from the review was to establish the cybersecurity and IoT businesses as separate entities.
However, this week BlackBerry revealed a reassessment of Project Imperium’s outcome—leading to a renewed commitment to a divisional structure. This shift abandons the earlier intention to pursue an IPO for its IoT business unit.
The new strategy involves streamlining corporate functions into dedicated teams for each business unit. The aim is for both divisions to operate independently, focusing on profitability and positive cash flow.
Simultaneously, BlackBerry appointed John J. Giamatteo as its new CEO. Giamatteo, who has been at the helm of BlackBerry’s cybersecurity business since 2021, brings extensive experience from leadership roles at security firms McAfee and AVG Technologies.
“I am honoured and excited to lead the next phase of BlackBerry’s evolution as its CEO. BlackBerry’s IoT and Cybersecurity businesses have market-leading technology, exceptional teams and large market opportunities,” said Giamatteo.
“The Board and I are fully aligned on the next steps needed to unlock the value within BlackBerry, and work on this effort will proceed at full speed. I look forward to working with the entire team to uphold our legacy of innovation and continue providing exceptional service to our customers as we deliver on our goals.”
As part of the restructuring, BlackBerry also announced plans for cost-cutting measures. The company is in the final stages of selecting a consulting firm to aid in the separation and right-sizing process, providing expertise and additional resources for an independent assessment.
This strategic realignment marks a pivotal moment for BlackBerry as it seeks to regain its market presence.
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