BlackBerry sells smartphone and messaging patents after shuttering smartphone services
BlackBerry has announced it will sell its legacy patents that are primarily related to mobile devices, messaging, and wireless networking for $600 million.
The patent sale is the final nail on the coffin of BlackBerry’s smartphone services, which first rose to prominence during the early 2000s for its phones with built-in QWERTY keyboards and email and BlackBerry Messenger support. The sale comes weeks after Blackberry turned off the lights for its smartphone services.
The legacy patents will be acquired by Catapult IP Innovations, a special purpose vehicle that was specifically formed for the acquisition. According to BlackBerry, the deal will be funded through a $450 million loan from a lending syndicate led by Toronto-based Third Eye Capital.
Patents related to BlackBerry’s current core business operations, which now comprises cybersecurity services and automotive software, are excluded from the transaction, BlackBerry added.
When the deal is closed, Blackberry will receive $450 million in cash and a promissory note in the principal amount of $150 million.
The sale process is expected to take up to 210 days.Â
