BT, Verizon Form $4 Billion International Venture as Verizon Pays $625 Million Fee
Updated
Updated · The Guardian · Jun 29
BT, Verizon Form $4 Billion International Venture as Verizon Pays $625 Million Fee
3 articles · Updated · The Guardian · Jun 29
Summary
$625 million will go from Verizon to BT to equalize voting rights in a new 50/50 joint venture combining their international businesses.
The company is expected to generate about $4 billion in annual revenue, serve more than 3,000 customers across roughly 180 countries, and be led by former Telstra executive Martijn Blanken.
BT said the deal ends its 18-month search for a buyer and advances CEO Allison Kirkby's UK-focused strategy after carving out the international unit, which employs more than 8,000 staff.
The venture will be incorporated in Jersey, headquartered and tax-resident in the UK, while the two businesses operate separately until regulatory approvals and employee consultations are completed.
For BT, the tie-up extends a decade-long retreat from overseas operations after the BT Italia scandal, following recent disposals in Ireland and of its US government contractor BT Federal.