Joint VentureJun 29, 2026, 06:26 AM
Verizon Forms JV with BT Group; Expects Q2 Charges
AI Summary
Verizon Communications Inc. announced a joint venture with BT Group plc, forming NewCo to combine their international wireline connectivity and managed network services businesses. Verizon will contribute its relevant subsidiaries and make a $625 million cash payment, resulting in both companies holding a 50% stake in NewCo. Concurrently, Verizon expects to record an estimated loss of $700 million to $800 million in Q2 2026 related to the contributed business, alongside additional Q2 charges of $350 million to $450 million for severance and $200 million to $300 million for asset rationalization as part of ongoing transformation initiatives.
Key Highlights
- Verizon and BT Group plc formed a joint venture (NewCo) for international wireline connectivity and managed network services.
- Verizon will contribute its international wireline business and make a $625 million cash payment to NewCo.
- Verizon and BT will each hold a 50% equity interest in NewCo.
- Verizon expects to record an estimated loss of $700 million to $800 million in Q2 2026 related to the contributed business.
- The transaction is expected to be accretive to Verizon Business Group EBITDA in Q2 2026.
- Verizon anticipates a severance charge of $350 million to $450 million in Q2 2026.
- Verizon expects asset rationalization charges of $200 million to $300 million in Q2 2026.
Price Impact
More from VZ