BlackBerry said on Monday it will sell its legacy patents primarily related to mobile devices, messaging and wireless networks for $600 million (approximately Rs. 4,490 crore) to a special purpose vehicle formed to acquire the company’s patent assets. .
BlackBerry said the transaction with the vehicle, Catapult IP Innovations, will not affect customers’ use of its products or services.
The move comes weeks after BlackBerry shut down service on its once-ubiquitous corporate smartphones that were sold by executives, politicians and legions of fans in the early 2000s.
US-listed BlackBerry shares fell 3.6 percent in premarket trading. One of the so-called “meme stocks” like GameStop and AMC Entertainment that witnessed a surge in early 2021, BlackBerry is up 41% last year.
Upon closing, the company will receive US$450 million (approximately Rs. 3,365 crore) in cash and a promissory note of US$150 million (approximately Rs. 1,120 crore).
Once known for its phones with a tiny physical QWERTY keyboard and BBM instant messaging service, BlackBerry’s core businesses today are cybersecurity and software used by automakers.
© Thomson Reuters 2022