What's Going On WIth BlackBerry Stock Today? - BlackBerry (NYSE:BB)

BlackBerry Ltd BB shares are trading higher. The company announced a patent sale worth up to $900 million Tuesday morning.

What Happened: BlackBerry entered into an agreement to sell substantially all of its non-core patents and patent applications to Malikie Innovations for cash at the closing of the deal, as well as potential future royalties.

BlackBerry is set to receive $170 million in cash on closing and an additional $30 million in cash no later than three years from the closing date. The royalties include 8% of the first $500 million in profit, 15% of the next $250 million, 30% of the following $250 million and 50% of all subsequent profits, capped at $700 million total.

BlackBerry will sell approximately 32,000 patents and applications, primarily related to mobile devices, messaging and wireless networking. The company will receive a license back to the patents being sold.

“This transaction, once complete, will further strengthen our balance sheet while simplifying our business and enabling increased focus on our core IoT and Cybersecurity opportunities,” said John Chen, executive chairman and CEO of BlackBerry. 

BlackBerry previously made smartphones for the mobile market, but it has since transitioned to a cybersecurity and IoT company that provides intelligent security software and services. 

See Also: Why On Holding Stock Is Running Tuesday

BB Price Action: BlackBerry has a 52-week high of $7.96 and a 52-week low of $3.17.

The stock was up 4.16% at $3.76 at time of publication, according to Benzinga Pro.

Photo: user1462590383 from Pixabay.

Image and article originally from www.benzinga.com. Read the original article here.