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BlackBerry (NYSE:BB) named John Giamatteo CEO and said that its IoT and cybersecurity units will become fully separate BlackBerry divisions and that the company will no longer pursue a subsidiary IPO of the IoT business.
Giamatteo, who also as Board member, was appointed effective immediately. As president of BlackBerry's cybersecurity business, he drove improvements to its product portfolio, go-to-market strategy and organizational efficiency, the company said in a news release Monday.
Before joining BlackBerry, Giamatteo was president and chief revenue officer at McAfee.
The company added that Richard (Dick) Lynch, who has served as interim CEO since November 4, will continue as chairman.
In November, John Chen left the company after 10 years at the helm. In October, the Canadian company announced it would split its Internet of Things and cybersecurity businesses into two independently operated units.
BlackBerry (BB) said Monday that after reassessing Project Imperium's results, its board decided to seek a separation of its IoT and cybersecurity businesses and establish them as standalone divisions.
In addition, the Company will no longer pursue a subsidiary IPO of its IoT business unit.
The process will involve separating and streamlining BlackBerry's centralized corporate functions into business unit-specific teams, with the goal of each department operating independently and on a profitable and cash flow-positive basis, the company said.
“The Board, with the support of its advisors, believes that a complete separation of BlackBerry's IoT and cybersecurity businesses will open up a number of strategic alternatives that can unlock shareholder value,” said Chief Executive Officer Lynch. “Management is focused on completing this restructuring quickly, which will further strengthen both companies’ focus on their respective markets and their ability to make quick and flexible decision-making.”
BlackBerry (BB) noted that to support the separation and resizing process, the company is in the final stages of selecting a consulting firm to provide expertise and additional resources for an independent assessment.
B.B -1.46% to $4.06 premarket on December 11th
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