What's Going On With BlackBerry Stock After Hours?

BlackBerry Ltd BB shares are trading higher in Wednesday's after-hours session after the company announced intent to separate its business units.

What Happened: As a result of the company's previously announced strategic review to drive shareholder value, BlackBerry's board determined that separating its IoT and Cybersecurity businesses is the best strategy for the company.

BlackBerry plans to pursue an IPO for its IoT business sometime in the first half of the company's upcoming fiscal year. The separation will allow each business unit to pursue its own strategy and capital allocation policy.

"The Board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders," said John Chen, executive chair and CEO of BlackBerry.

"Both the IoT and Cyber businesses have leading technology and talent and address large and growing market opportunities. This new proposed structure will further increase both their operational agility and ability to focus on delivering exceptional solutions to their customers."

BlackBerry is currently covered by four analyst firms. One has a Buy rating on the stock and the other three have Neutral ratings. 

From Last Week: BlackBerry Reports Q2 Earnings, Sees Strong Second Half For Cyber Business

BB Price Action: BlackBerry shares were up 4.69% after hours at $4.47 at the time of publication, per Benzinga Pro.

Photo: courtesy of BlackBerry.