Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when VZ files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsVerizon and BT combine international wireline into 50-50 JV; Verizon pays $625M true-up; $1.25–1.55B Q2 charges
Filed June 29, 2026 · Period ending June 28, 2026 · ~1 min read
Key Changes
-
high
50-50 JV with BT: both contribute international wireline businesses; Verizon also pays ~$625M cash true-up (subject to closing cash/NWC/debt adjustments) for half of the combined NewCo.
Item 7.01 — Regulation FD Disclosure verify on EDGAR → -
high
Held-for-sale on Verizon's contributed assets: estimated $700–800M non-cash Q2 loss; Business Group → Corporate move described as EBITDA-accretive to the Business Group segment.
Item 7.01 — Regulation FD Disclosure verify on EDGAR → -
medium
Separate transformation charges in Q2: $350–450M severance and $200–300M asset rationalization — not attributed to the BT JV.
Item 7.01 — Regulation FD Disclosure verify on EDGAR → -
medium
Combined Q2 items ~$1.25–1.55B. Disclosure is furnished under Item 7.01 (not filed under Section 18); Transaction Agreement described, not attached.
Item 7.01 — Regulation FD Disclosure verify on EDGAR →
Summary
Verizon and BT Group are combining their international wireline connectivity and managed network services businesses into a 50-50 joint venture (NewCo). Verizon contributes its international wireline business and pays BT approximately $625 million cash as a true-up (subject to closing adjustments for cash, net working capital, and indebtedness); BT contributes its own international wireline business.
Verizon ends up with 50% of the enlarged combined entity — not simply offloading its unit for cash. The deal needs regulatory approvals and customary closing conditions.
Separately for Q2 2026, Verizon expects a $700–800 million non-cash held-for-sale loss on the contributed assets (JV-driven), plus $350–450 million severance and $200–300 million asset-rationalization charges from ongoing transformation initiatives (not the BT deal) — combined about $1.25–1.55 billion. The held-for-sale move is described as accretive to Verizon Business Group EBITDA as net assets shift from Business Group to Corporate and other (the filing does not call those assets 'underperforming'). Item 7.01 information is furnished, not filed, under Section 18 — a material JV and >$1B of charges disclosed under Reg FD without attaching the Transaction Agreement. Signed by William L. Horton, Jr., SVP and Deputy General Counsel.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Verizon–BT 50-50 international wireline JV ($625M true-up); $700–800M held-for-sale loss + transformation charges; furnished Item 7.01.
Added in current filing · verify on EDGAR →
On June 28, 2026, Verizon Communications Inc., a Delaware corporation (“Verizon”), entered into a transaction agreement (the “Transaction Agreement”) with BT Group plc, a public limited company incorporated under the laws of England and Wales (“BT”), and Jasper NewCo Limited, a company incorporated under the laws of the Bailiwick of Jersey (“NewCo”). Pursuant to the Transaction Agreement, upon the terms and subject to the conditions thereof, (i) (A) Verizon will contribute the equity interests of certain of its subsidiaries that conduct Verizon’s international wireline connectivity and managed network services business (the “Verizon Contributed Business”) and (B) BT will contribute the equity interests of certain of its subsidiaries that conduct BT’s international wireline connectivity and managed network services business (the “BT Contributed Business”) to NewCo, and (ii) Verizon will make a cash payment equal to $625 million to NewCo, which NewCo will onward distribute to BT, in each case in exchange for shares representing 50% of the issued and outstanding equity interests of NewCo.
Verizon and BT are combining their international wireline connectivity and managed network services businesses into a 50-50 NewCo. Each contributes its international wireline business; Verizon also pays BT about $625 million cash as a true-up reflecting relative contribution values, subject to closing adjustments for cash, net working capital, and indebtedness. Verizon receives 50% of the enlarged combined entity — not a one-sided exit of its unit for cash. Subject to regulatory approvals and customary closing conditions. Item 7.01 information is furnished, not filed, under Section 18.
Added in current filing · verify on EDGAR →
As a result of continued headcount reduction initiatives, Verizon expects to record a severance charge in the range of $350 million to $450 million.
Verizon is continuing workforce reduction efforts and will record severance charges of $350 million to $450 million in Q2 2026. This is part of the company's ongoing transformation initiatives.
Added in current filing · verify on EDGAR →
Verizon expects to record asset rationalization charges in the range of $200 million to $300 million predominately related to the decision to cease use of certain real estate and network assets as part of its transformation initiatives.
Verizon will take asset rationalization charges of $200 million to $300 million in Q2 2026, primarily from discontinuing use of certain real estate and network assets. This is part of the company's broader transformation program.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jul 10, 2026 · How we verify