BlackBerry ponders a breakup

Article Excerpt

BLACKBERRY LTD. $7.22 is a hold. The company (Toronto symbol BB; Manufacturing sector; Shares outstanding: 582.2 million; Market cap: $4.2 billion; No dividend paid; Takeover Target Rating: Medium; www.blackberry.com) quit developing smartphones in 2016 to concentrate on security software for mobile phones and self-driving cars. Blackberry recently agreed to sell 32,000 of its less-important patents and patent applications to a unit of Key Patent Innovations Ltd. It will receive an initial upfront payment of $170 million U.S. and additional royalties depending on future earnings from those patents. In all, the deal could be worth $900 million U.S. The company is also conducting a strategic review of its various businesses. That could lead to a sale or spinoff. It has not said when it expects to complete this process. BlackBerry is a hold. hold…