Verizon to form 50/50 joint venture with BT, pays $625M and expects Q2 charges

Verizon entered into an agreement to contribute its international wireline connectivity and managed network services business to a 50/50 joint venture with BT and will pay $625 million.

Key Highlights:

• Verizon and BT will each contribute their international wireline connectivity and managed network services businesses to NewCo, with Verizon receiving 50% equity.
• Verizon will make a $625 million cash payment to NewCo, which will be distributed to BT in exchange for its 50% interest.
• Verizon expects an estimated Q2 loss of $700M–$800M as the contributed business was classified as held for sale.
• Additional Q2 charges: severance $350M–$450M and asset rationalization $200M–$300M; transaction subject to regulatory approvals.

Original SEC Filing:

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