Friday, July 19, 2024

BlackBerry considering spinning off messaging service into separate unit


BlackBerry Ltd is reportedly contemplating the idea of spinning off its messaging service into a separate entity, according to sources familiar with the matter. The potential subsidiary would be named BBM Inc, as per the Wall Street Journal.

While a BlackBerry spokeswoman refrained from commenting on the speculation, insiders reveal that the company has reorganized internal resources to focus on enhancing the BlackBerry Messenger service for its upcoming debut on rival platforms. Despite these efforts, there are currently no immediate plans to separate the unit, with BBM for Apple’s iPhone and Android devices expected to roll out in the coming weeks.

With approximately 60 million users sending billions of messages daily, BlackBerry is striving to elevate the service’s appeal amidst declining handset sales. Looking to extend its reach, the company is working on features like video calling over WiFi and compatibility with non-BlackBerry devices. Additionally, BlackBerry is exploring the introduction of BBM Channels to enable targeted advertising.

Furthermore, there are talks of making BBM accessible on desktop computers, providing users with a seamless multi-platform experience. In light of this, BlackBerry recently disclosed its contemplation of various options, including a potential sale of the company.

On the trading front, BlackBerry’s shares witnessed a 3 percent dip on the Toronto Stock Exchange, standing at C.63. The stock has undergone a significant depreciation since its peak in 2011, emphasizing the need for strategic shifts to reinvigorate the company’s market presence.

As BlackBerry navigates these transformative endeavors, the tech industry eagerly anticipates the company’s next moves in the competitive messaging landscape.

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