BT and Verizon announce $4bn joint venture; BT cuts fiscal 2027 guidance
BT and Verizon are combining their international enterprise operations into a 50:50 joint venture with $4 billion in combined annual revenue, marking a step in BT's refocus on its UK home market.
The joint venture
BT and Verizon on Monday announced a 50:50 joint venture combining their international enterprise operations. The new company will serve more than 3,000 business customers across over 180 countries, with combined annual revenue of $4 billion. Verizon will pay BT an equalisation payment of $625 million, and both parents will hold equal voting rights.
The venture is the clear answer for international customers who need secure, flexible connectivity that works across borders and cloud environments.
The transaction is expected to close in 2027, subject to regulatory clearances and consultations with employee representatives in some countries. Until then, both companies' international businesses will continue to operate independently.
- BT and Verizon announce 50:50 joint venture
- Martijn Blanken joins BT Group as CEO-designate
- Transaction expected to close, subject to regulatory approvals
BT's domestic refocus
The deal advances BT chief executive Allison Kirkby's strategy of refocusing the 180-year-old British telecoms group on its home UK market while shedding international assets. BT had separated its 8,000-staff international unit into a standalone division for financial reporting last year.
Today's announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our UK-focused strategy.
Kirkby has also expanded BT's cost-cutting programme. In May she raised the savings target from £3 billion by 2029 to £3.7 billion by 2030. The moves will shrink BT's workforce from 130,000 in 2023 to about 75,000 by 2030. BT separately cut its guidance for fiscal 2027, the company said on Monday.
- 2023
- 130000 employees
- 2030
- 75000 employees
Verizon's parallel turnaround
For Verizon, the venture allows a sharper focus on its domestic wireless business, which faces pressure from rivals T-Mobile and AT&T. Chief executive Dan Schulman has been pushing his own turnaround. In November, Verizon announced about 13,000 job cuts, the largest single lay-off in its history, while cutting prices on some mobile plans to retain customers.
Leadership and structure
Martijn Blanken, a former Telstra executive, has been named chief executive officer-designate of the new company. He will join BT Group from 1 September 2026 and work with both parents ahead of the launch. The venture will be incorporated in Jersey and headquartered and tax resident in the UK.
