BlackBerry and T-Mobile Call It Quits

BlackBerry and T-Mobile have officially parted ways; what does that mean for their investors?

Andrew Tonner
Andrew Tonner
Apr 11, 2014 at 10:30AM
Technology and Telecom

As the famous song would have us all believe, "Breaking up is hard to do." And while that might have held true for your high school sweetheart, it certainly wasn't the case for tech and telecom players BlackBerry (NYSE:BB) and T-Mobile (NASDAQ:TMUS); they unceremoniously severed business ties last week after months of bad blood and bad press had torn the two apart.

So now, in the wake of this front page split, the question remains whether this will affect either BlackBerry's or T-Mobile's business going forward.

Source: BlackBerry

Never ever getting back together
In sizing up the significance of the breakup between BlackBerry and T-Mobile, it's probably safe to say that neither BlackBerry nor T-Mobile will miss the other all too much, which bodes well for shareholders in either company.

For BlackBerry, its recent efforts have largely focused on decoupling and then scaling its software from its dying handset business under new CEO John Chen. In T-Mobile's case, BlackBerry handsets haven't been exactly flying off the shelves, as we saw, once again, during BlackBerry's recent quarterly report.

In the video below, tech and telecom analyst Andrew Tonner looks at this storyline in greater detail, and explains why neither BlackBerry nor T-Mobile shareholders have much to worry about with this high profile parting of ways.