BT and Verizon Form $4 Billion Joint Venture for International Business
9 verified5 unconfirmed
BT and Verizon announced on Monday a 50/50 joint venture that will combine their international enterprise networking businesses, creating a company with approximately $4 billion in annual revenue. Verizon will pay BT a $625 million equalization fee to ensure equal voting rights in the new entity. The venture will serve more than 3,000 multinational customers across about 180 countries. Both telecom companies aim to refocus on their home markets—Britain for BT and the United States for Verizon—while the joint venture targets multinational clients' cloud and data residency needs. The new business will be incorporated in Jersey and headquartered in the UK, with former Telstra executive Martijn Blanken appointed as CEO-designate. The deal remains subject to regulatory approvals and employee consultations in certain countries, with the transaction expected to close in 2027. Both BT and Verizon emphasized the venture’s “AI-ready” and secure connectivity platform in their announcements.
What’s verified
BT and Verizon are forming a 50/50 joint venture combining their international enterprise networking businesses.
The new company will have roughly $4 billion in combined annual revenue.
Verizon will pay BT a $625 million equalization fee to balance the value of contributed assets.
The joint venture will serve more than 3,000 multinational customers across about 180 countries.
The deal allows both companies to refocus on their domestic markets: the UK for BT and the US for Verizon.
Martijn Blanken, former CEO of EXA Infrastructure, has been named CEO-designate of the joint venture.
The joint venture will be incorporated in Jersey and headquartered and tax resident in the UK.
The transaction is subject to regulatory clearances and consultation with employee representatives.
BT and Verizon described the venture as a “cutting-edge, AI-ready and secure platform” for multinational customers.
Not yet confirmed
Whether the deal will close by a specific date: The Register reports the transaction is expected to close in 2027; The Guardian does not provide a timeline.
The exact financial performance of BT’s international business: The Register cites BT guidance of £1.82 billion in revenue and £108 million in adjusted EBITDA for the year ending March 2027; The Guardian does not include these figures.
Details on BT’s cost-cutting program and Kirkby’s compensation: Only The Guardian reports her £5.6m pay package and the raised savings target.
The role of Clive Selley: The Register notes he will remain BT International CEO until the deal completes; The Guardian does not mention him.
Analyst commentary from Megabuyte’s Tom Oughton appears exclusively in The Register.
Key figures
Allison Kirkby, chief executive of BT
Dan Schulman, chief executive of Verizon
Martijn Blanken, CEO-designate of the joint venture
Clive Selley, chief executive of BT International
Tom Oughton, analyst at Megabuyte
Sources: The Guardian, theregister.com
