BlackBerry Offloads Cylance for Just 160M, Taking a Hit from Its Initial1.4B Investment

In 2018, BlackBerry made a bold move into the cybersecurity space with the acquisition of startup Cylance for $of$1.4 billion by the time of its acquisition, showcasing rapid growth in the cybersecurity sector.

However, the subsequent six years under BlackBerry's umbrella saw Cylance's market share in endpoint security dwindle to just 1.3%, outpaced by competitors. This led BlackBerry to the decision of offloading Cylance, which was purchased by cybersecurity firm Arctic Wolf for a mere $160 million—a stark loss from its initial acquisition cost.

John Giammatteo, CEO of BlackBerry, stated that customers would benefit from continuous service and the expertise of a global cybersecurity leader like Arctic Wolf, which plans to leverage its scale to further develop the Cylance business.

The decision to sell was attributed to a market shift towards threat detection and response products, an area where Cylance had not ventured. Further investment would have been necessary to pivot and grow in this direction.

Following the sale, BlackBerry's stock saw a 16% increase, indicating investor approval of shedding the underperforming segment. Indeed, Cylance had reported a $51 million loss in the fiscal year ending February 28, 2025.

BlackBerry now plans to refocus its investments on more profitable segments like secure communication services, leveraging its existing infrastructure and customer base to capture a larger market share.