BlackBerry Nears Pact to Sell Its Mobile Device Patents; Shares Up
BlackBerry is making “significant progress” in negotiations to sell the portion of its patent portfolio involving mobile devices, messaging and wireless networking -- “areas of business that we are no longer actively involved with,” said CEO John Chen on a…
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call Wednesday for fiscal Q2 ended Aug. 31. BlackBerry and the potential buyer reached preliminary agreement on “many of the key terms,” he said. “We expect to execute a definitive agreement this quarter.” Q2 licensing revenue was only $15 million because patent “monetization activities remain limited while negotiations for the potential sale continue,” said Chief Financial Officer Steve Rai. Neither he nor Chen identified the possible buyer. BlackBerry made the decision five years ago to exit handset development and manufacturing in favor of a royalty-bearing model that licenses the brand and intellectual property to other smartphone makers (see 1609280006). The stock closed 11% higher Thursday at $10.60.