BT and Verizon Agree to Merge Global Business Ventures

BT and US telecommunications giant Verizon have announced plans to combine both companies' business ventures, concluding BT’s 18-month search for a buyer of its international operations.

Both companies announced this week that Verizon will make an equalisation payment of US$625m to BT.

The agreement is expected to result in a company with more than 3,000 customers worldwide with a combined revenue of US$4bn.

As BT finally ends its search for a buyer, Allison Kirkby, BT’s CEO, says she will work to refocus the company on the UK market.

Since taking the CEO position in 2024, Allison has been instrumental in BT’s multibillion-pound cost-saving programme across the company. In May, she said BT would raise its cost savings target from £3bn (US$3.96bn) by 2029 to £3.7bn (US$4.89bn) by 2030.

Potential job losses across business operations

The move to merge both business ventures follows a series of asset reductions, including the sale of BT’s Italian business and its Irish wholesale and enterprise unit.

These planned cost savings over the next four years are estimated to result in 55,000 job losses globally. Additionally, Verizon has been pursuing a similar cost-saving strategy, announcing plans in November to cut more than 13,000 jobs across all operations.

Verizon CEO Dan Schulman told employees during the announcement in November that the company needed to “simplify our operations to address the complexity and friction that slow us down and frustrate our customers”.

Recently, Dan also expressed his optimism over the merger, saying: “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 organisation dedicated to their needs.”

Combining BT’s expertise with Verizon’s global relationships

The new business will be overseen by Martijn Blanken, a former executive at Australian telecom firm Telstra. BT and Verizon say the new venture will be incorporated in Jersey and headquartered and tax resident in the UK.

Martijn is expected to join BT on 1 September, ahead of the deal’s estimated completion in 2027.

Allison says the agreement serves as a “major milestone for BT International, and an important step forward for BT as a whole” as the company delivers on its UK-focused strategy.

She adds that the agreement between the two telecom giants would combine BT’s “expertise and heritage with Verizon’s deep relationships with multinationals”.

“When we thought about how to best support them, this joint venture was the clear answer.”

Clive Selley will continue to serve as BT International’s CEO until the transaction is complete, while Verizon’s leadership will remain the same, with both businesses operating independently before the deal closes.

Neither company has disclosed any potential cost reductions following the merger’s completion and both are yet to announce the official name of the joint business venture.