Canadian smartphone-maker BlackBerry is reportedly evaluating whether to spin off its messaging service into a separate unit.
The struggling company is in the midst of a strategic review which could result in a sale.
By separating off the messaging…
Canadian smartphone-maker BlackBerry is reportedly evaluating whether to spin off its messaging service into a separate unit.
The struggling company is in the midst of a strategic review which could result in a sale.
By separating off the messaging unit – which would be known as BBM – it is trying to position the service as a valuable asset to buyers, according to people familiar with the matter cited by The Wall Street Journal.
In May the Canadian handset maker’s CEO Thorsten Heins said the messaging service would become available on rival smartphones this year.
BlackBerry’s team working on BBM is reportedly looking to add video chatting as it attempts to compete with cross-platform competitors such as WhatsApp which have overtaken the service. At the end of March BlackBerry said its service had 55 million users a month.
Earlier this month BlackBerry formed a special committee to examine strategic options including joint ventures, strategic partnerships or a sale of the business.
JP Morgan was appointed as financial adviser and Skadden, Arps, Slate, Meagher & Flom and Torys are serving as legal advisers.
The Waterloo, Ontario-headquartered company’s shares, which once traded as high as US$144 in 2008, are now trading around the US$10 mark.
Recent figures show that the once-market leader now has a mere 2.9% of the global smartphone market.
