Full Breakdown
BT Group and Verizon Launch $4 Billion 50/50 Joint Venture for International Enterprise Connectivity
6/29/2026, 8:38:55 PM
Joint Venture Announcement
On 29 June 2026 BT Group plc and Verizon Communications Inc. signed a definitive agreement to merge their international enterprise units into a 50 %-owned joint venture. The new entity will serve >3,000 multinational customers in >180 countries, generate approximately $4 billion of annual revenue, and be funded by Verizon’s $625 million equalisation payment to BT. Equal voting rights will be held by both parents; the venture is slated to close in 2027, subject to regulatory clearance.
Background & Context
BT’s 18-month search for a buyer of its international arm ended as CEO Allison Kirkby refocused the 180-year-old group on the UK market and accelerated a £3.7 billion cost-saving programme. Verizon, under CEO Dan Schulman, has been trimming its US workforce and seeking a scalable way to serve globally-footprinted enterprise clients. Both firms cite a fragmented market and rising demand for AI-ready, cloud-first connectivity as drivers for consolidation.
Key Figures & Groups
- Allison Kirkby, CEO, BT Group
- Dan Schulman, CEO, Verizon Communications
- Martijn Blanken, former Telstra, EXA Infrastructure and KPN executive, appointed CEO-designate of the joint venture (effective 1 Sept 2026)
- Clive Selley, CEO of BT International, will oversee the transition
- Advisors include Goldman Sachs (BT) and Morgan Stanley (Verizon).
Data & Statistics
- Combined annual revenue: ? $4 billion
- Customer base: > 3,000 enterprises
- Geographic reach: > 180 countries
- Equalisation payment: $625 million
- BT International FY 2026/27: £1.82 billion revenue, £108 million adjusted EBITDA, ~8,000 staff (all to transfer)
- Expected headcount for BT Group by 2030: 75,000-80,000 (some sources cite 75,000-90,000).
Why It Matters
The venture aims to unlock scale efficiencies, accelerate rollout of next-generation networking, and deliver secure, sovereign-compliant platforms tailored for AI-driven enterprises. By off-loading international operations, BT can concentrate on its domestic broadband and 5G agenda, while Verizon can focus on its US consumer base. Industry analysts view the deal as a potential catalyst for further consolidation in a market dominated by regional players.
Official Statements & Responses
Kirkby emphasized that the partnership “creates a stronger, scaled connectivity partner” and aligns with BT’s UK-focused strategy. Schulman described the joint venture as “the clear answer” for multinational customers needing secure, flexible, cross-border connectivity. Both companies confirmed that their international businesses will operate independently until the transaction closes and that the new entity will be incorporated in Jersey with headquarters and tax residence in the United Kingdom.
Criticism & Opposition
TelecomTV’s editorial warned that “international B2B ventures have a troubled history,” citing past failures such as Concert and KPN Qwest, and cautioned that merging operations can be “hard to successfully combine… and also make money.” Market reaction was muted; BT’s share price was flat to slightly up in early trading, suggesting investor caution.
Conflicting Reports & Gaps
Sources differ on BT’s projected headcount range (75,000-80,000 vs 75,000-90,000) and on the exact size of the addressable market, which remains undisclosed. Financial guidance varies across releases, reflecting uncertainty about post-JV profitability.
Verbatim Quotes
- “The world’s leading brands and international organisations trust BT International to connect them across the world. Bringing together this expertise and heritage with Verizon’s deep relationships with multinationals will create a stronger, scaled connectivity partner – one that has the reach, innovation and investment to succeed,” — Allison Kirkby, CEO, BT Group
- “Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments.” — Dan Schulman, CEO, Verizon Communications
- “This is a very fragmented market and this could be the start of further consolidation,” — Allison Kirkby, Reuters interview
- “ There’s a lot of positivity about this and clearly it suits both parties, but such international B2B ventures have a troubled history.” — Ray Le Maistre, Editorial Director, TelecomTV
- “We see this as a unique opportunity to create a scaled player to serve our multinational customers much better,” — Allison Kirkby, press release
What’s Next
Regulatory approvals and employee consultations must be secured before the 2027 closing. Martijn Blanken will lead preparation work from September 2026, and both firms have signaled openness to future third-party participation as the market evolves.
