BlackBerry Rumored to Be Spinning Off Messenger Service

Jacob Harper |

Reports on Aug 27 indicate that Research in Motion Ltd., popularly known as BlackBerry (BBRY) is rumored to be considering spinning off their messaging service so they can focus on hardware. The Canadian tech company’s messaging service is very popular, with 60 million users sending over a billion messages a day. But BlackBerry is in dire straits, and if they don’t take drastic measures soon, the once-king of the mobile market might be facing extinction.

Blackberry’s woes are no secret. On Aug. 13 the company announced they were putting themselves up for sale. The company still has many attractive features, and in March proved they’re still capable of nabbing major bulk orders from other companies when they closed a deal to sell one million BB10 phones. However, BlackBerry posted abysmal earnings in June that were so bad the very future of the company was put in jeopardy.

Spinning off the messaging service would create a subsidiary called BBM Inc. If BlackBerry splits up, they could become more attractive to buyers like Apple Inc. (AAPL) ,  Google Inc. (GOOG) or Microsoft Corporation (MSFT) who are looking to absorb the company.

Another possibility is that BlackBerry is getting ready to focus on becoming a service provider exclusively. As Daily Tech reports, BlackBerry is preparing to move its top executives to the new unit in a "survivalist" transition out of software and devices.

BlackBerry’s stock has dropped three-quarters since its high in 2011. They’re up 5.36 percent on the day to hit $10.36 a share.

(image of Blackberry phone courtesy fo Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AAPL Apple Inc. 114.05 1.93 1.72 24,424,233
GOOG Alphabet Inc. 785.93 9.51 1.22 1,238,574
BBRY BlackBerry Limited 7.81 -0.03 -0.32 2,471,564
MSFT Microsoft Corporation 61.86 0.85 1.39 14,459,824
CMOXF iShares Global Water Index ETF Com Unit 21.85 0.00 0.00 0

Comments

Private Markets

Lyft

Lyft matches drivers using their own personal vehicles with passengers who request rides through the smartphone app, and the passengers pay automatically through the app. When using Lyft, passengers have…

Airbnb

Airbnb is a community marketplace for people to list, discover, and book unique accommodations around the world — online or from a mobile phone. Whether an apartment for a night,…