TLDR
- Verizon and BT are combining their international enterprise units into a 50/50 joint venture with roughly $4 billion in combined annual revenue.
- Verizon will pay BT an equalisation payment of $625 million as part of the deal.
- The new venture will serve more than 3,000 customers across 180+ countries.
- VZ stock rose about 1% on the news, closing at $46.54, and is up 18% year-to-date.
- BT cut its 2027 revenue outlook following the deal, now guiding to £17.1–£17.6 billion, down from £19–£19.5 billion.
Verizon and BT Group have agreed to merge their international enterprise operations into a 50/50 joint venture, creating a combined business with roughly $4 billion in annual revenue.
Verizon is in advanced talks to combine some of its international business with that of the UK’s BT https://t.co/hsJlGWCk10
— Bloomberg (@business) June 29, 2026
As part of the agreement, Verizon will make a $625 million equalisation payment to BT. Both companies will hold equal voting rights in the new entity, which still needs regulatory approval before it can launch.
VZ stock gained about 1% on the news, closing at $46.54. The stock is up around 18% year-to-date heading into the deal announcement.
Verizon Communications Inc., VZ
The new venture will cover more than 3,000 customers in over 180 countries. BT and Verizon have named Martijn Blanken, a former executive at Telstra and KPN, as CEO-designate. He joins BT Group from September 1 to help prepare for the launch.
For BT, the deal is a clean break from a unit that has long weighed on earnings. Its international operations served multinational companies across a wide geography, but margins were thin and support costs high. BT CEO Allison Kirkby has been steering the 180-year-old company back toward its UK home market.
BT had reportedly been in talks with AT&T and Orange, among others, before landing on the Verizon pairing. New Street Research analyst James Ratzer called it “a neat and attractive exit for BT,” noting the $625 million payment implies a sale multiple above 10 times EBITDA.
BT Cuts Its Outlook
Despite the upbeat deal tone, BT trimmed its financial guidance. The company now expects adjusted group revenue of £17.1–£17.6 billion for 2027, down from its earlier forecast of £19–£19.5 billion. Adjusted EBITDA guidance also came in £100 million below the prior range, now expected at £8.1–£8.2 billion.
BT stock edged up about 1% in early London trading following the announcement.
The $625 million payment from Verizon will partly fund the new venture, with any remainder going to reduce BT’s debt load, according to Kirkby.
What This Means for Verizon
On the Verizon side, the deal fits neatly into the restructuring effort being led by CEO Dan Schulman. The company is currently cutting around 20% of its workforce as part of a broader push to improve returns and shed underperforming assets.
Verizon’s international portfolio includes wireline assets, private networks, and cybersecurity consulting. The deal does not touch its core US consumer wireless business.
Schulman described the venture as “the clear answer” for international customers who need secure, flexible connectivity across borders and cloud environments.
Wall Street is cautiously optimistic on VZ. Based on 15 analyst ratings over the past three months, the stock carries a Moderate Buy consensus. The average price target sits at $50.96, implying about 9.5% upside from current levels.
Kirkby said the two companies’ customer bases are largely complementary, with minimal overlap, and left the door open to bringing in third-party partners down the line.
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