BT and Verizon to create joint global business in $625m deal

Telecom giants BT and Verizon are merging their international operations into a new, jointly owned venture, marking the end of BT's extensive search for a buyer for its global division. The deal establishes a 50/50 partnership, with Verizon contributing $625 million to BT as an "equalization" fee to ensure balanced voting rights.

This strategic move is expected to form a significant global player, boasting over 3,000 corporate clients across approximately 180 countries and generating a combined annual revenue of $4 billion. For BT, this venture aligns with CEO Allison Kirkby's strategy to sharpen the company's focus on the UK market. Kirkby, who took the helm in February 2024, has been driving a substantial cost-cutting program across BT, recently increasing its savings target.

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This deal marks an important step forward for BT as a whole, as we deliver on our UK-focused strategy.

Verizon has also undertaken cost-saving measures, including job reductions, to streamline operations. CEO David Schulman stated that the joint venture with BT will provide a "cutting-edge, AI-ready and secure platform." The new business will be led by Martijn Blanken, a former executive at Telstra, and will be incorporated in Jersey, with its headquarters and tax residency in the UK.

The transaction is pending regulatory approval and consultation with employee representatives in various countries. Until the deal officially closes, the international businesses of both companies will continue to operate independently. This collaboration signifies a major step in reshaping the global telecommunications landscape, driven by a focus on efficiency and customer needs.

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The joint venture with BT will provide a cutting-edge, AI-ready and secure platform run by a single global organisation dedicated to [customer] needs.