As part of its restructuring plans, BlackBerry has sold its U.S. headquarters in Irving, Texas to Brookfield Property Group for an undisclosed sum. The company will not move out of the campus, but will leaseback about 37% of the property instead. The fact that BlackBerry is looking to make do with less than half of the facility’s total size is indicative of the scale of the job cuts it is undertaking. The company announced in September 2013 that it will cut about 4,500 jobs or about 40% of its workforce and cut operating costs in half by May 2014. It also plans to sell and leaseback more than 3 million square feet of office space in Canada, where its global headquarters are situated. The real estate sales and job cuts are part of a broader move to conserve cash and fund its turnaround efforts amid intense competition from Apple’s and Google’s smartphone platforms, especially in the retail market.
Our $9 price estimate for BlackBerry is about in line with the current market price.
See our complete analysis for BlackBerry here
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