In the restructuring, BlackBerry’s IoT and Cybersecurity businesses are to be operated as fully independent divisions.
Following the retirement of ex-CEO John Chen on November 4, BlackBerry Limited has appointed John J. Giamatteo as its new Chief Executive Officer, effective immediately, and also as a member of its Board of Directors. Richard (Dick) Lynch, who has served as interim CEO since November 4, 2023, will continue his role as Board Chair. , abandoning the plan for a subsidiary IPO of the IoT business.
John J. Giamatteo, with over 30 years of experience in global technology companies, has been leading BlackBerry’s Cybersecurity business unit since October 2021. His previous roles include President and Chief Revenue Officer at McAfee and Chief Operating Officer at AVG Technologies. He has also held leadership positions at Solera, RealNetworks, and Nortel Networks.
BlackBerry’s Board has also opted to divide its IoT and Cybersecurity operations into separate, independent divisions. Consequently, plans for a subsidiary IPO of the IoT unit have been abandoned. This restructuring will involve splitting and reorganizing BlackBerry’s centralized corporate functions to cater specifically to each business unit, aiming to make them independently profitable and cash-flow positive.
Dick Lynch with advice from its consultants, believes splitting the businesses could present several strategic opportunities that might increase shareholder value. Technology analyst Carmi Levy believes that the cyber security division needs to buckle-up.
BlackBerry is currently finalizing the selection of a consulting firm to support the separation and resizing process. This firm will provide expertise and additional resources for a comprehensive, independent evaluation of the restructuring.