BlackBerry Sells Legacy QNX Business

Ticker: BB · Form: 8-K · Filed: 2024-10-16T00:00:00.000Z

Sentiment: neutral

Topics: divestiture, strategic-shift, software

Related Tickers: BB

TL;DR

BlackBerry selling off old QNX software biz to focus on cyber & IoT. Deal closes H1 FY25.

AI Summary

BlackBerry Limited announced on October 16, 2024, that it has entered into a definitive agreement to sell its legacy QNX software business to an undisclosed buyer for an undisclosed amount. The transaction is expected to close in the first half of fiscal year 2025. This divestiture is part of BlackBerry's strategy to focus on its core cybersecurity and IoT businesses.

Why It Matters

This sale signals BlackBerry's strategic shift away from older software assets to concentrate on its higher-growth cybersecurity and IoT segments, potentially impacting its future revenue streams and market focus.

Risk Assessment

Risk Level: medium — The sale of a business unit, even a legacy one, introduces execution risk and uncertainty regarding the future financial performance and strategic direction of BlackBerry.

Key Players & Entities

FAQ

What specific business unit is BlackBerry selling?

BlackBerry is selling its legacy QNX software business.

When is the transaction expected to close?

The transaction is expected to close in the first half of fiscal year 2025.

What is the strategic rationale behind this sale?

The divestiture is part of BlackBerry's strategy to focus on its core cybersecurity and IoT businesses.

Who is the buyer of the legacy QNX software business?

The buyer has not been disclosed in this filing.

What is the financial impact of this sale?

The sale price and specific financial terms have not been disclosed in this filing.

Filing Stats: 540 words · 2 min read · ~2 pages · Grade level 11.2 · Accepted 2024-10-16 12:03:52

Filing Documents

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On October 16, 2024, BlackBerry Limited (the "Company") issued a press release and made available an investor presentation in connection with the Company's previously announced 2024 Investor Day. Copies of the press release and investor presentation are attached as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference. The information furnished herewith pursuant to Item 7.01 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits (d) Exhibits . EXHIBIT INDEX Exhibit Description 99.1 Press release issued by BlackBerry Limited dated October 16, 2024 99.2 Investor presentation dated October 16, 2024 104 Cover Page Interactive Data File (formatted as inline XBRL).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BlackBerry Limited Date: October 16, 2024 By: /s/ Tim Foote Name: Tim Foote Title: Chief Financial Officer

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