Verizon Communications Inc. (Verizon) has entered into a transaction agreement with BT Group plc (BT) to form a joint venture named Jasper NewCo Limited. The joint venture will combine Verizon's international wireline connectivity and managed network services business with BT's equivalent business. Verizon will contribute its business and make a cash payment of $625 million to NewCo, which will then distribute it to BT. Both Verizon and BT will hold a 50% equity interest in the new joint venture. The transaction is subject to customary regulatory approvals and closing conditions. In the second quarter of 2026, Verizon expects to record an estimated loss between $700 million and $800 million related to the classification of the Verizon Contributed Business as assets and liabilities held for sale. Verizon anticipates the transaction to be accretive to Verizon Business Group EBITDA in Q2 2026. Verizon also expects to record a severance charge of $350 million to $450 million due to headcount reduction initiatives. Additionally, asset rationalization charges of $200 million to $300 million are expected, primarily related to ceasing the use of certain real estate and network assets.