BlackBerry ‘Frustrated’ With Stalled Sale of its Legacy Patents: CEO

The “sales process” continues as BlackBerry divests its legacy patent portfolio to Catapult IP Innovations for $600 million (see 2201310001), said CEO John Chen on an earnings call Tuesday for fiscal Q2 ended Aug. 31. “We understand that the length of time that this has taken is frustrating for shareholders, and we are equally as frustrated, if not more, as we work on it every day,” he said. “We firmly believe that divesting the portfolio remains the best option for shareholder value.” Catapult is working to conclude its financing “in parallel to getting government approval,” said Chen. “We believe the turmoil in the financial markets created unexpected challenges for their original financing syndicate.” There has been “much interest from other parties wanting to step in to take their place,” he said. BlackBerry also is finalizing its plan to “restart” the patent “monetization engine ourselves, should that be necessary,” he said. The “macro environment” for automotive “remains a mixed picture with varying dynamics across regions and OEMs,” said Chen. The Chinese market, where BlackBerry won several designs recently, “appears to be bouncing back, due to the end of some COVID-related shutdowns and the impact of robust stimulus measures,” he said. But in North America and Europe, “there appears to be a short-term contraction with certain chip supplies, constraining the ability of OEMs to build inventory and meet demand,” he said. “Going forward, the impact of rising interest rates” on consumer financing “creates the possibility of future choppiness,” he said.