BT and Verizon create $4 billion joint venture for international enterprise business, signalling retreat from global ambitions

The deal

BT and Verizon announced on Monday that they are merging their international enterprise divisions into a new company equally owned by the two parents. The venture will target multinational corporations, offering connectivity and networking services designed for a cloud-first, AI-first environment. More than 3,000 customers in over 180 countries will be served, and the combined entity is expected to generate around $4 billion in annual revenue.

Customers will benefit from new, secure and resilient connectivity platforms, which are designed for the age of AI and sovereign where it matters.

Financial implications

Verizon will pay BT an equalisation payment of $625 million, reflecting the larger scale of the British company’s contribution. BT International’s top line is estimated at about $2.4 billion this year, equivalent to 60% of the venture’s revenue total. Verizon, meanwhile, expects to record a loss of $700 million to $800 million in the second quarter of 2026 from reclassifying the assets it contributes as held for sale.

The deal allows BT to deconsolidate a shrinking, loss-making international unit and focus on the UK, where its fibre rollout has covered more than two-thirds of the country since 2021. CEO Allison Kirkby said the cash received would be used in part to reduce debt.

Strategic retreat and historical echoes

The move unwinds a decades-old ambition. In the late 1990s BT ran Concert, a similar joint venture with AT&T that collapsed during the dotcom bust, costing BT a $2 billion write-down. The current deal marks a retreat from that globalist playbook, with both companies now concentrating on domestic turnarounds.

The joint venture with Verizon could be the beginning of a broader consolidation.

Leadership and what comes next

The companies named Martijn Blanken as chief executive officer-designate; he will join BT Group on September 1, 2026, and work with both parents ahead of the launch. Clive Selley will continue to run BT International during the transitional phase. The transaction, subject to regulatory approvals, is expected to close in 2027. Once operational, the venture will contract with both parents for cross-border integrated services, including in the UK and US home markets.