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BB Stock Alert: BlackBerry Sells Patents in $900 Million Deal

  • BlackBerry (BB) is trending after announcing a sale of its patents valued up to $900 million.
  • The sale will help the company focus on its Internet of Things (IoT) and cybersecurity businesses.
  • BB stock rallied more than 5% this morning before pulling back somewhat.
the BlackBerry logo presented on a white background
Source: Shutterstock

Canada-based technology company BlackBerry (NYSE:BB) is evidently slimming down. According to a press release, the company stands to generate hundreds of millions of dollars from an upcoming sale of its intellectual property (IP). As a result, BlackBerry will be able to focus on its core businesses. This prospect is putting BB stock traders in a buying mood today.

You might recall that BlackBerry was once known for mobile phones with little keypads. When those types of phones became unpopular, however, BlackBerry shifted towards 5G, cybersecurity and other growing technology markets.

Now, it looks like BlackBerry wants to get smaller and more focused. After having scrapped a previous deal with Catapult IP Innovations, the company just announced an agreement to “sell substantially all of its non-core patents and patent applications” to Key Patent Innovations Limited subsidiary Malikie Innovations Limited.

Key Patent Innovations Limited is described as a “leading intellectual property monetization company.” Between a cash payment conferred at the deal’s closing and potential future royalty payments, BlackBerry stands to generate up to $900 million from the deal with Malikie.

What’s Happening With BB Stock?

Clearly, BlackBerry’s investors are pleased with this development. BB stock rallied more than 5% early this morning. However, it has since pulled back a bit. Shares are up just over 3% as of this writing.

It’s understandable that financial traders approve of what the company is doing now. For one thing, a potential $900 million capital infusion could certainly help BlackBerry pursue its business strategy this year.

However, it’s also notable that BlackBerry’s strategy is changing, as the IP sale will enable the company to shift its focus. As Executive Chairman and CEO John Chen explained, the sale will “further strengthen” the company’s balance sheet and simplify its business. Additionally, it will enable “increased focus” on Internet of Things (IoT) and cybersecurity opportunities.

So, once again, BlackBerry is changing and evolving. The company’s future direction will hopefully allow it to slim down while also demonstrating growth. With that in mind, investors are looking forward to further developments and enthusiastically buying BB stock today.

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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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