Verizon Communications 8-K

Summary

Verizon and BT agreed to combine their international wireline connectivity and managed network services businesses in a jointly owned venture. Each will contribute its business for 50% ownership; Verizon will also pay $625M to NewCo, which will distribute it to BT. Closing is subject to regulatory approvals and customary conditions.

Key Figures

• Q2 2026 held-for-sale loss: $700M-$800M expected for the Verizon contributed business.
• Q2 2026 transformation charges: $350M-$450M for severance from continued headcount reductions, and $200M-$300M for asset rationalization, mainly ceasing use of certain real estate and network assets.
• At closing, the contributed businesses’ values will be adjusted for their respective cash, net working capital and indebtedness.

Guidance

• Q2 2026 Verizon Business Group EBITDA expected to be accretive from the transaction as the contributed business moves from Verizon Business Group to Corporate and other.

Investor Takeaways

• Regulatory approvals and satisfaction of closing conditions determine whether the joint venture proceeds.