BlackBerry BB DD – Canada and Facebook Settlement

This is not a financial advice. Don't be stupid.


It might surprise you but BB is a Canadian company 🇨🇦 . One thing all Canadian federal parties (LPC, CPC, BQ, NDP, GPC) have in common is they heavily support Canadian companies no matter what. Not only that, people in Canada still reminiscent about BB and their role in Canadian history.

Here is CEO John Chen at Public Policy Forum in 2019 on why he chose to stay in Canada and the support he got from the federal Canadian Gov. I highly recommend you watch the whole section since it highly speaks of BB's culture. (0:53 – 4:18).

Here is starting from the juicy part (1:53 – 4:18)

Facebook Settlement:

Here is Bloomberg reporting in January 2021 that Facebook and BlackBerry has settled with no further details.

  1. CEO John Chen confirms their licensing negotiation involves the complete sale of the majority of BB's portfolio (@34:48)


Michael Walkley -- Canaccord Genuity Group -- Analyst

... Should you complete the sale, just the vast majority of your portfolio and you won't have any licensing revenue going forward? ...

John Chen -- Executive Chairman and Chief Executive Officer

Well, it's a major portion of our portfolio.

2) Deal involves one huge payment followed by a tail revenue and keeping IVY and QNX(36:53 – 38:09)


Daniel Chan -- TD Securities -- Analyst

Hi, John. Just a question about how you're hoping to structure the deal for the patent sale. Should we expect ongoing royalties to come from, maybe you get a portion of the licensing fees that you are -- that the buyer will take or is this more of a one-time deal?

John Chen -- Executive Chairman and Chief Executive Officer

There is a majority of the deal will come in one-time early, but there is a tail that goes on. I can't give you the details of this, but for multiple number of years.

Daniel Chan -- TD Securities -- Analyst

Okay, now you mentioned in the past that you've had offers for the entire portfolio. So what's different now that's making you consider selling it.

John Chen -- Executive Chairman and Chief Executive Officer

There re two reasons. Number one is, I really think it is a wrong thing to sell the entire portfolio because there is so much of our -- we have an ongoing business in cybersecurity and an ongoing business in BTS which of course includes IVY and QNX. I think selling those portfolio will be extremely unwise for the company and for the shareholders.

3) Tail revenue is up to SEVEN years (@47:31).

John Chen -- Executive Chairman and Chief Executive Officer

Yeah. Paul, that's a good question. So this is an unusual year. So let's talk about, if the patent license goes through, if the sale goes through, we will have -- we will report a one-time gain of a reasonably big number, followed by a tail of up to seven years.

All of this is huge. It shows that:

  1. BB is in the upper position in negotiation by the fact that Facebook is willing to buy a majority of BB's patents upright to avoid trial
  2. BB is in the position to negotiate up to 7 years of licensing revenue after their sale.
  3. BB has a clear business plan post sale.


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