Key facts
- BT and Verizon are forming a 50/50 joint venture for their global operations.
- Verizon will pay BT $625 million as an equalisation payment.
- The joint venture will target multinational customers and operate in over 180 countries.
- BT CEO Allison Kirkby stated the deal is a milestone and supports a UK-focused strategy.
- The combined venture is expected to have annual revenues of approximately $4 billion.
- Martijn Blanken will serve as the chief executive of the new venture.
BT and Verizon have announced a significant deal to combine their global businesses into a new 50/50 joint venture. Verizon will pay BT $625 million for equal voting rights in the new entity, which is expected to serve over 3,000 multinational customers across approximately 180 countries and generate combined annual revenues of around $4 billion. BT CEO Allison Kirkby described the move as a "major milestone" and an important step in the company's strategy to concentrate on its domestic UK market. The deal is expected to yield significant scale efficiencies across the combined global network and service operations. Martijn Blanken, a former Telstra executive, is set to lead the new venture as chief executive starting in September, while Clive Selley will continue to lead BT International until the joint venture is ready to launch. The international division will be treated as a discontinued operation in BT's accounts until completion.