finance
BT and Verizon form 50/50 joint venture for international operations
BT and Verizon will combine their international businesses in a deal that ends BT's search for a buyer. Verizon will pay BT a $625 million equalization fee to ensure equal ownership in the new venture.
The GuardianAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
BT and Verizon announced on Monday that they will merge their international operations into a 50/50 joint venture. Verizon will pay BT a $625 million equalization fee to secure equal voting rights in the new company. The combined business is projected to serve more than 3,000 customers across about 180 countries and generate $4 billion in annual revenue.
The companies said the international units will continue to operate independently until regulatory approvals are secured.
Background on the transaction The agreement concludes BT's more than 18-month effort to sell its international division. The company has been shifting focus toward its domestic UK operations. BT's chief executive stated the deal represents an important step in delivering the company's UK-focused strategy. Headcount at BT is expected to fall to between 75,000 and 80,000 employees by 2030.
Leadership and next steps The new venture will be led by a former Telstra executive and will be incorporated in Jersey with headquarters in the UK. Verizon's chief executive said the platform will be AI-ready and managed by a single global organization. The transaction remains subject to regulatory clearances and employee consultations in multiple countries.
