BT and Verizon form global joint venture in $625m deal

BT and US mobile carrier Verizon have announced a merger of their international businesses, ending the British telecom group's more than 18-month search for a buyer. Verizon will pay a $625m (£473m) "equalisation" fee to BT to secure equal voting rights in the new 50/50 joint venture, the companies said on Monday. The venture is expected to have over 3,000 customers across about 180 countries and combined annual revenue of $4bn.

BT chief executive Allison Kirkby, who took the helm in February 2024, has been refocusing the company on the UK market. She said the deal marked an important step forward for BT as it delivers on its UK-focused strategy. Kirkby has overseen a multibillion-pound cost-cutting programme. Last month, BT raised its savings target from £3bn by 2029 to £3.7bn by 2030. BT's headcount is expected to end the decade at between 75,000 and 80,000, the lower end of the 75,000 to 90,000 range set out in 2023.

Kirkby's pay and bonus package more than doubled last year to £5.6m, the biggest award to a BT boss in over a decade. BT shares have risen more than 70% since she started. Verizon has also been cutting costs, announcing in November it would eliminate about 13,000 jobs. Verizon CEO David Schulman said the joint venture would provide a cutting-edge, AI-ready and secure platform run by a single global organisation.

The new business will be led by Martijn Blanken, a former Telstra executive. It will be incorporated in Jersey and headquartered and tax resident in the UK. The deal is subject to regulatory clearances and consultation with employee representatives in some countries. The international businesses will operate independently until the transaction is completed.