BlackBerry stock surges after company sold legacy patents for $600M

Blackberry (BB.US) stock managed to erased early losses and surged 10.0% after the communications software company agreed to sell its non-core legacy patents for $600 million to Catapult IP innovations, a special purpose vehicle formed specifically to buy those patents. Patents primarily relate to mobile devices, messaging, and wireless networks. "Patents that are essential to BlackBerry's current core business operations are excluded from the transaction," the company said Monday. "BlackBerry will receive a license back to the patents being sold, which relate primarily to mobile devices, messaging and wireless networking. This transaction will not impact customers' use of any of BlackBerry's products, solutions or services."

Blackberry (BB.US) stock bounced off the support at $7.50 and is approaching the major resistance zone around $8.42 which coincides with 78.6% Fibonacci retracement of the upward wave launched back in March 2020. Source: xStation5