BlackBerry Ready to Sell Mobile and Messaging Patents for $600 Million
BlackBerry announced on Monday that it will sell its legacy patents, primarily related to mobile devices, messaging, and wireless networking, to a special purpose vehicle formed to acquire the company’s patent assets for $600 million.
BlackBerry stated that the transaction with Catapult IP Innovations will have no effect on customers’ use of its products or services.
The decision comes just weeks after BlackBerry discontinued service for its once-ubiquitous business smartphones, which were carried by executives, politicians, and legions of fans in the early 2000s.
BlackBerry shares on the NYSE were down 3.6 percent in premarket trading. BlackBerry was one of the so-called “meme stocks,” along with GameStop and AMC Entertainment, that saw a surge in early 2021.
The company will receive $450 million in cash and a promissory note for $150 million at the conclusion of the transaction.
BlackBerry’s core businesses today are cybersecurity and software used by automakers. The company was once known for phones with a tiny QWERTY physical keyboard and the BBM instant messaging service.
