BT Group and Verizon to form joint venture, creating a scaled international connectivity platform for multinational customers
Rhea-AI Summary
BT Group and Verizon (NYSE:VZ) agreed to combine their international enterprise operations into a 50:50 joint venture focused on multinational connectivity. The new company is expected to serve over 3,000 customers in 180+ countries with about $4 billion in combined annual revenue.
Verizon will pay BT a $625 million equalization payment. The deal is expected to close in 2027, subject to regulatory approvals. Martijn Blanken is CEO-designate. The venture will be incorporated in Jersey, headquartered and tax resident in the UK.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Joint venture targets approximately $4 billion in combined annual revenue
- Verizon to pay BT an equalization payment of $625 million
- Platform expected to serve 3,000+ customers across 180+ countries
- Parents retain equal 50:50 ownership and voting rights in the venture
Negative
- Transaction completion delayed until 2027, pending regulatory clearances
- Operational synergies deferred as both businesses remain separate until closing
- Deal requires regulatory and employee consultation approvals, adding closing risk
News Market Reaction – VZ
On the day this news was published, VZ declined 5.24%, reflecting a notable negative market reaction. Argus tracked a trough of -6.0% from its starting point during tracking. Our momentum scanner triggered 76 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $10.33B from the company's valuation, bringing the market cap to $186.73B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Partnership Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 14 | JV announcement | Positive | -0.3% | Planned JV with major U.S. carriers to reduce dead zones via D2D. |
| Oct 03 | Tech partnership | Positive | +0.6% | Collaboration with GE Vernova to support utility grid modernization. |
| Sep 29 | Marketing alliance | Positive | -0.8% | World Cup 26 marketing tie-up featuring David Beckham and fan rewards. |
| Sep 23 | Public sector deal | Positive | +0.4% | Buffalo public safety communications upgrade using Verizon Business solutions. |
| Jul 31 | Retail distribution | Positive | +0.4% | Expansion of Verizon kiosks in 35 Staples locations to reach more customers. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Partnership headlines for VZ have historically produced small share moves, slightly more often positive than negative.
Key Terms
joint venture financial
cloud-first technical
regulatory clearances regulatory
tax resident regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
- BT Group and Verizon agree to combine their respective international operations in a 50:50 joint venture, creating a new company focused on multinational connectivity.
- The joint venture will serve more than 3,000 customers across more than 180 countries, representing approx.
$4 billion in combined annual revenue. - The combination of international networking businesses creates a future-ready, scaled organization underpinned by a new platform designed for the age of cloud and AI.
- Martijn Blanken is appointed Chief Executive Officer-designate of the new joint venture, conditional on completion of the transaction.
- The transaction is expected to complete in 2027, subject to regulatory clearances and other customary closing conditions.
LONDON and NEW YORK, June 29, 2026 (GLOBE NEWSWIRE) -- BT Group (BT) and Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced the signing of an agreement to combine their respective international enterprise operations into a 50:50 joint venture – in a move that is set to transform international connectivity.
The new joint venture will focus on serving multinational organizations. It is expected to serve more than 3,000 customers across more than 180 countries, representing approximately
Designed specifically for a cloud-first world in the age of AI, the joint venture brings together BT International, which serves multinational customers with secure and resilient communication and network services around the world, with Verizon’s international enterprise wireline arm, which provides secure connectivity to enterprises worldwide. Both BT and Verizon will hold equal voting rights and Verizon has agreed to pay BT an equalization payment of
By combining global scale with infrastructure designed and built to support local compliance and sovereignty needs, the joint venture will create a stronger platform for growth and accelerate the rollout of next-generation connectivity platforms. Customers will benefit from secure and resilient connectivity designed to meet data, operational and regulatory requirements.
At the same time, the parent companies will be better able to focus on their domestic markets, while providing support to the new joint venture as equal shareholders.
BT and Verizon have also today confirmed that Martijn Blanken has been appointed Chief Executive Officer-designate of the new joint venture, conditional on the completion of the transaction. Martijn has almost three decades in senior leadership positions across telecommunications, technology and digital infrastructure at Telstra, Openwave Systems, EXA Infrastructure and KPN, and a career spanning four continents. From September 1, 2026, he will join BT and will work with both parent companies, while observing relevant regulatory requirements, as they prepare for the launch of the proposed joint venture.
Clive Selley will continue to lead BT International as CEO, ensuring continuity of BT International’s ongoing transformation in readiness for the creation of the joint venture. Verizon’s leadership remains unchanged.
Allison Kirkby, Chief Executive of BT Group, said: “The world’s leading brands and international organizations 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. Customers will benefit from new, secure and resilient connectivity platforms which are designed for the age of AI and sovereign where it matters. It will create new opportunities for our people and long-term value for our owners. Today’s announcement marks a major milestone for BT International, and an important step forward for BT as a whole, as we deliver on our U.K.-focused strategy.”
Dan Schulman, CEO of Verizon, said: "Our international customers require secure, flexible connectivity that works seamlessly across borders and cloud environments. When we thought about how to best support them, this joint venture was the clear answer: a cutting-edge, AI-ready and secure platform run by a single global organization dedicated to their needs. At the same time, our relationship with those customers will stay equally strong as we continue to directly provide them with the connectivity they need in the U.S."
The transaction is subject to regulatory clearances and consultation with employee representations in countries where required. BT and Verizon’s international businesses will continue to operate independently until the transaction officially closes with a full commitment to their respective customers.
Additional information
- The new joint venture will be incorporated in the Bailiwick of Jersey and headquartered and tax resident in the United Kingdom.
- On completion of the transaction, the new joint venture will establish commercial relationships with both BT and Verizon – providing a seamless, end-to-end service across borders including for our customers in the U.K. (BT) and the U.S. (Verizon).
- Goldman Sachs acted as lead financial advisor to BT, with Deloitte transaction services advisor and Freshfields LLP as legal counsel. Morgan Stanley & Co. LLC acted as financial advisors to Verizon and Kirkland & Ellis LLP acted as legal counsel.
Verizon Forward-Looking Statements
This communication contains forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include those regarding our possible or assumed future results of operations and those regarding our ability to consummate the proposed transaction with BT Group plc and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all. Forward-looking statements also include those preceded or followed by the words "anticipates," "assumes," "believes," "estimates," "expects," "forecasts," "hopes," "intends," "plans," "targets," “will” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
This announcement was originally published by Verizon. Read the original press release.
About BT Group
BT Group is the U.K.’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services.
BT Group consists of four customer-facing units: Consumer serves individuals and families in the U.K.; Business covers companies and public services in the U.K.; International serves multinational organisations headquartered outside the U.K. and overseas public sector customers; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers – over 700 communications providers across the U.K.
British Telecommunications Limited is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.
For more information, visit www.bt.com/about
About Verizon
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of
VERIZON’S ONLINE MEDIA CENTER: News releases, stories, media contacts and other resources are available at verizon.com/news. News releases are also available through an RSS feed. To subscribe, visit www.verizon.com/about/rss-feeds/.
Media contacts:
Sarah Heinz (Verizon)
Sarah.Heinz@verizon.com
347-931-6300
Katie Magnotta (Verizon)
katie.magnotta@verizon.com
201-602-9235
Jackie Bates (BT)
Jackie.Bates@bt.com
07496 691845
