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BT and Verizon merge international networks into a joint venture

BT and Verizon merge international networks into a joint venture

Money Moves

A 50-50 venture pools both carriers' global enterprise arms and lets BT pull back to the UK

June 29th, 2026: BT and Verizon announce the $4 billion venture

Overview

Updated Jun 30

BT spent about 18 months trying to sell its international arm. On June 29, 2026, it found a different exit: a 50-50 joint venture with Verizon that pools both carriers' global enterprise networks into one $4 billion business. Verizon pays BT $625 million for equal voting rights, and the combined company will serve more than 3,000 corporate clients across 180-plus countries.

BT shares rose 1.9% to 198.75p; Verizon fell roughly 5%, hit by the charge disclosures and its removal from the Dow Jones Industrial Average after 22 years. Verizon flagged a $700-800 million Q2 loss from marking its international wireline unit as held for sale. The company also expects $350-450 million in severance charges and $200-300 million in asset-rationalization costs from its wider restructuring.

Why it matters

Big multinationals that buy network service from BT or Verizon will get one global provider instead of two, with new pricing and contracts on the way.

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Key Indicators

$4B
Combined annual revenue
Yearly revenue of the merged international enterprise business.
$625M
Equalisation payment
What Verizon pays BT to secure equal voting rights in the 50-50 venture.
3,000+
Corporate customers
Multinational clients served by the combined business.
180+
Countries covered
Reach of the merged network footprint.
2027
Expected close
Target year for completion, pending regulatory clearances.

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People Involved

Organizations Involved

Timeline

February 2024 September 2026

6 events Latest: June 29th, 2026 · 2 months ago
Tap a bar to jump to that date
  1. Blanken starts as CEO-designate

    Upcoming Leadership

    Martijn Blanken begins leading the venture's setup ahead of the deal's close.

  2. BT and Verizon announce the $4 billion venture

    Latest Deal

    The two carriers agree a 50-50 joint venture combining their international enterprise networks, with Verizon paying BT $625 million for equal voting rights.

  3. Verizon flags up to $800M Q2 charge tied to JV reclassification

    Financial

    Verizon disclosed a $700-800M Q2 loss from reclassifying its international wireline business as held for sale. The company also flagged $350-450M in severance charges and $200-300M in asset-rationalization costs from its wider transformation program.

  4. BT shares rise 1.9%; Verizon falls ~5% on deal day

    Market

    BT shares climbed to 198.75p on the JV announcement. Verizon fell roughly 5%, compounded by the Q2 charge disclosures and the company's removal from the Dow Jones Industrial Average after a 22-year run.

  5. BT puts its international arm up for sale

    Strategy

    BT begins what becomes a roughly 18-month search for a buyer for its international operations.

  6. Kirkby takes over at BT

    Leadership

    Allison Kirkby becomes BT chief executive and starts simplifying the group around the UK.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1998-2002

BT and AT&T's Concert venture (1998-2002)

BT and AT&T built Concert, a global venture to serve multinational companies. Management clashes, heavy debt, and losses of about $800 million a year sank it. The partners split the assets in 2001.

Then

The wind-down cost roughly 2,300 jobs. AT&T took about $5.3 billion in charges and BT about $1.7 billion.

Now

Concert's assets folded back into each carrier's regional operations, ending BT's biggest attempt at a global enterprise tie-up.

Why this matters now

It is BT's clearest precedent for a 50-50 transatlantic enterprise venture, and a reminder that shared control and culture gaps can break these deals.

February 2005 to January 2006

Verizon buys MCI (2005-2006)

Verizon acquired long-distance and enterprise carrier MCI for about $8.4 billion, beating a rival bid. The deal gave Verizon a large business and international network arm.

Then

Verizon gained thousands of corporate customers and a global IP backbone overnight.

Now

The MCI assets became the core of Verizon's enterprise and international wireline business, the same arm now going into the BT venture.

Why this matters now

It shows how Verizon built the international unit it is now pooling, and why scale in enterprise networking matters to the company.

February 2015 to January 2016

BT acquires EE (2015-2016)

BT bought mobile operator EE for £12.5 billion, returning to the UK consumer mobile market it had exited years earlier. Regulators cleared the deal in early 2016.

Then

BT became the UK's largest mobile and broadband provider in one move.

Now

It anchored BT's strategy around the UK, the same focus driving the decision to offload its international arm a decade later.

Why this matters now

It marks the start of BT's tilt toward the UK home market that the Verizon venture now extends.

Sources

(12)