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BT and Verizon to create joint global business in $4bn deal

BT and Verizon to create joint global business in $4bn deal

Summary

BT and Verizon are joining their international businesses to create a new company with yearly revenue of about $4 billion. Verizon will pay BT a fee to ensure they share control equally. This deal ends BT's long search for a buyer as it focuses more on its UK market.

Key Facts

  • BT and Verizon will form a 50/50 joint venture combining their global business operations.
  • Verizon will pay BT $625 million as an equalization fee for equal voting rights.
  • The new company will have over 3,000 customers in about 180 countries and $4 billion in annual revenue.
  • BT’s CEO, Allison Kirkby, started in February 2024 and is focusing BT more on the UK market.
  • BT is cutting costs and aims to save £3.7 billion by 2030, with staff numbers expected to be between 75,000 and 80,000 by then.
  • Verizon announced job cuts of around 13,000 in late 2023 to simplify operations.
  • The joint venture will be led by Martijn Blanken, headquartered in the UK and incorporated in Jersey.
  • The deal needs approvals from regulators and employee consultations before it is finalized.
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