As the market capitalization of what was once Canada's technology gem, which put Canada back in the discussion around innovation and tech growth two decades ago, BlackBerry Ltd.
(TSX:BB)(NYSE:BB) has since fallen from grace. The company’s valuation pales in comparison to many other great technology names that have popped up in Canada in recent years.
The former smartphone maker has shifted its corporate strategy to become a software-focused company, targeting the auto industry (and more specifically the niche, high growth autonomous driving segment) via its QNX platform of late.
This shift has come complete with a few acquisitions alongside years of divestitures and cost
cutting. Of note, last year the company made a relatively large acquisition of a software security company (Cylance). This acquisition came under investor scrutiny due to the price BlackBerry paid to acquire the company. Blackberry’s management team hailed the acquisition as transformative for the long-term future of its QNX platform and market position, but ultimately time will tell how positive the acquisition will end up being.
New rumours about BlackBerry itself becoming an acquisition target, or potentially bait for a
hostile takeover, have become rampant as various companies have increased their stakes in
BlackBerry of late. While it's still too early to tell if anything will materialize, I advise investors to keep their eye on BlackBerry in the coming months for more news.
Invest wisely, my friends.