Verizon and BT Group Announce 50/50 Joint Venture for International Wireline Businesses

Verizon has entered into a transaction agreement with BT Group plc to combine their respective international wireline and managed network services businesses into a new 50/50 joint venture. As part of the agreement, Verizon will also make a cash payment of $625 million to the new entity.

Key Details

• Transaction Structure: Both Verizon and BT Group will contribute their respective international wireline businesses to a new entity, "NewCo," and will each hold a 50% equity stake.
• Financial Terms: In addition to contributing its business segment, Verizon will make a $625 million cash payment to the joint venture, which will then be distributed to BT. The transaction is subject to customary regulatory approvals.
• Q2 2026 Financial Impact: Verizon expects to record an estimated loss of $700 million to $800 million in Q2 2026 related to classifying the contributed assets as held for sale. The company also anticipates additional Q2 charges for severance ($350M-$450M) and asset rationalization ($200M-$300M).