BlackBerry in Talks to Sell Mobile Device, Networking Patents
BlackBerry is in "an exclusive negotiation" to sell a “major portion” of its patent portfolio to a “North American party,” said CEO John Chen on a Tuesday call for fiscal Q4, ended Feb. 28. BlackBerry would retain rights to use…
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the patents, he said. Those for sale are “relevant” for mobile devices, messaging and wireless networking but “not useful to us today,” he said. The patents associated with BlackBerry’s “strategic software and services business” won't be involved, he said. “The company has not yet reached a definitive binding agreement, and negotiations are ongoing.” Licensing and other revenue was $50 million in Q4, said Chief Financial Officer Steve Rai. “Licensing activities have been limited not only due to the ongoing negotiations, but also because revenue from additional transactions that could have been completed in the quarter would have been treated as contingent revenue and deferred to future periods,” he said. “Had negotiations not been in progress, we believe licensing revenue would have been higher.” Rai's disclosure sent the stock tumbling 9.7% Friday, closing at $8.43.