RE:BlackBerry looks for its own WeChat app Post/wireIndonesia's population is 260,500,000 which makes it the 4th most populated country in the world.
BBM is the #1 instant messaging app in Indonesia and this deal might entice people to switch to BBM from other messaging apps like Line, Hangouts and Whatsapp.
It lowers Blackberry's expenses by transferring employees and it gives Blackberry about $10 million in revenue each quarter for the next six years and it seems as though Blackberry will also receive royalty payments for each BBM user that engages with content and services.
This seems like a great deal for both companies and BBM could stand to gain a lot of new users.
260,500,000 total population and 60,000,000 MAU BBM users. The market is still developing and this deal should entice people to switch to BBM in Indonesia.
I think this deal is being downplayed by investors, but this deal would have saved Blackberry about $6 million in expenses and added about $10 million in revenue which would have earned Blackerry a positive EPS instead of $0.00 EPS last quarter (Q1).