Blackberry Ltd (BBRY) May Spin Off BBM As Sale Looms

Blackberry Ltd (BBRY) May Spin Off BBM As Sale Looms
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Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) put itself up for sale just weeks ago, but the company may already be considering other options for its future. According to Dow Jones, the company may be considering spinning off its Blackberry Messaging service. The service is one of the most often talked about features that Blackberry offers.

Blackberry Ltd (BBRY) May Spin Off BBM As Sale Looms

The Dow Jones piece suggested that Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) was looking to reorganize itself in order to make BBM operate more as a standalone unit. This reorganization might not be about spinning off BBM, it might be about making it more prominent in the company’s structure, and making the company more valuable to buyers by association.

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Blackberry Messenger on Android and iOS

Blackberry Messenger has often been talked of as an ideal asset for the company to capitalize on in order to expand its business and diversify beyond smartphones. The company is due to arrive on Apple Inc. (NASDAQ:AAPL) iOS and Google Inc (NASDAQ:GOOG) devices some time soon. If the service is popular on those platforms it may provide an impetus for the spinning off of the business.

Blackberry shares slide

Shares in Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) have fallen by more than 2% on today’s market at time of writing. If the company does decide to reorganize and spin off BBM, it might unlock a huge amount of value. It might also release one of the biggest assets it has in its smart phone range. Without the long loved BBM under its control, Blackberry may not be able to hold many of its core customers.

Investors are still unsure how to value Blackberry Ltd (NASDAQ:BBRY) (TSE:BB) as it heads into a sale. It’s difficult to know what metrics prospective buyers are using to value the failing company. That makes it difficult to know what price to buy in at. Today’s news has not, as of yet, been seen as a particularly value added one by the company’s shareholders.

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