Again in early 2019, after months of hypothesis linking Telefonica to a sale of its Central American operations, the Spanish telecom big agreed to offload all 5 of its models within the area.
By the top of 2019, the Madrid-based group had unveiled a five-point turnaround technique to overtake its enterprise.
One of many group’s most eye-catching facets of the plan was Telefonica’s resolution to spin off its Latin American companies—excluding Brazil.
Then-CEO José María Álvarez-Pallete acknowledged:
“The historical past of our firm can’t be understood with out our dedication to Latin America for 30 years, which has made Telefónica a greater firm. We have now all the time proven a powerful dedication to the area, even in its most tough moments … Our operations in Latin America had been the expansion engine of the corporate till a number of years in the past. Nevertheless, the actual situations in these markets have had an affect on the enterprise, decreasing its contribution lately for various causes and regardless of the large efforts of our native groups, which have all the time proven a powerful dedication … With this operational spin-off, Telefónica begins a strategic assessment of its portfolio in Hispanoamérica with the double goal of modulating the publicity to the area, whereas creating the situations to maximise its worth by way of progress, consolidation and doable company transactions.”
Within the wake of the COVID-19 pandemic, Telefonica’s instant focus in Latin America was on sealing fiber-optic joint ventures in markets similar to Brazil, Chile, Colombia, and Peru. Telefonica sought to pursue “strategic alliances” to cut back the digital divide—and cut back its publicity on the identical time.
At the start of 2025, Álvarez-Pallete stepped apart to make manner for Marc Murtra. With quite a few divestments both confirmed or rumored in latest weeks, Telefonica’s authentic plan to cut back its publicity within the area has lastly gathered tempo.
Immediately, we study the models on the chopping block and consider Telefonica’s quickly shrinking portfolio.
Argentina
Unit: Telefonica Argentina (Movistar)
Cell Subscriptions (December 2024): 16.15 million
Purchaser: Telecom Argentina (Private)
Sale Agreed: February 2025
Worth: $1.245 billion
In February 2025, the Spanish group agreed to promote Telefonica Argentina (Movistar) to rival home operator Telecom Argentina (Private) in a deal valued at $1.245 billion.
Each events indicated that the deal was signed and closed on February 24. Nevertheless, Telecom didn’t full submitting the required data with the Nationwide Communications Company (Ente Nacional de Comunicaciones, ENACOM) and the Nationwide Fee for Defence of Competitors (Comision Nacional de Defensa de la Competencia, CNDC) till the next month.
No sooner had the deal been introduced than President Javier Milei’s authorities issued a press release confirming it might consider the tie-up, which might put 70% of the nation’s telecom sector underneath the management of 1 group.
In accordance with native information reviews, Milei—who prides himself on slicing pink tape and selling free markets—has taken a private curiosity within the deal due to his connections.
In accordance with native information reviews, Milei—who prides himself on slicing pink tape and selling free markets—has taken a private curiosity within the deal due to his connections. His international minister, Gerardo Werthein, is a cousin to Dario Werthein, who leads Grupo Werthein—the corporate that was reportedly outbid for Telefonica’s belongings.
Grupo Werthein, which owns DirecTV models throughout Latin America, has thought of getting into the native cellular sector by way of an MVNO settlement. The group seeks to enrich its current pay-TV/ISP enterprise in Argentina.
Colombia
Unit: Colombia Telecomunicaciones (Movistar Colombia)
Cell Subscriptions (December 2024): 20.595 million
Purchaser: Millicom Spain, a subsidiary of Millicom Worldwide Mobile (MIC)
Sale Agreed: March 2025
Valuation: $400 million (67.5% stake); value might drop to $362 million after changes
Earlier this month, Telefonica reached an settlement to promote its 67.5% stake in Colombia Telecomunicaciones (Movistar Colombia) to Millicom Worldwide Mobile (MIC)—the dad or mum firm of Tigo Colombia—for $400 million.
The latter firm will purchase the shareholding by way of its Millicom Spain subsidiary. The 2 events be aware that the ultimate worth of the deal “shall be topic to the same old value changes for such a transaction” and will drop to $362 million.
The deal is topic to sure closing situations, together with the related regulatory approvals and particular agreements with Colombia’s Ministry of Finance and Public Credit score and Empresas Publicas de Medellin (EPM).
In July 2024, Millicom mentioned it supposed to purchase the federal government’s 32.5% stake in Movistar Colombia on the identical buy value per share provided to Telefonica. Moreover, Millicom intends to amass EPM’s 50% curiosity in Tigo Colombia for a “comparable valuation a number of.”
When the offers are full and Telefonica’s belongings are merged with these of Tigo Colombia, the enlarged entity will boast a 43% market share, bringing it nearer consistent with dominant cellular participant Claro.
Mexico
Unit: Telefonica Moviles Mexico (Movistar)
Cell Subscriptions (December 2024): 21.500 million
Purchaser: TBC
Sale Agreed: TBC
Valuation: $2 billion
In February 2025, Telefonica reportedly employed funding financial institution JPMorgan to promote its subsidiary Telefonica Moviles Mexico (Movistar). Sources near the matter indicated that the group seeks to hold out the sale earlier than its annual shareholders assembly, which is prone to be held in April or Might.
Regardless of widespread sale hypothesis, no potential patrons have been named to this point.
TeleGeography notes that in September 2018, it was reported that Telefonica was contemplating the divestment of its Mexican division, with valuations ranging as much as EUR1.9 billion ($2 billion). At that juncture, the unit piqued the curiosity of Cerberus Capital Administration, however the funding agency was unwilling to match Telefonica’s valuation of the enterprise.
Uruguay
Unit: Telefonica Moviles Uruguay (Movistar)
Cell Subscriptions (December 2024): 1.38 million
Purchaser: TBC
Sale Agreed: TBC
Valuation: $350 million–$400 million
In February 2025—amid a flurry of gross sales rumors—it was prompt that Telefonica was in search of a purchaser for its Uruguayan enterprise. Sources indicated that the way forward for the unit was intently linked to the destiny of Telefonica’s Argentine subsidiary as a result of shut relationship between the 2 neighboring nations.
With the Argentina sale already confirmed, plainly the times of the Uruguayan unit are numbered.
With the Argentina sale already confirmed, plainly the times of the Uruguayan unit are numbered. Movistar Uruguay is alleged to be valued at between $350 million and $400 million—consistent with a suggestion that Telefonica allegedly acquired greater than three years in the past from a consortium comprising Argentine ISP Tremendous, businessman Edgardo Novick, and an unnamed U.S. fund.
Native information reviews indicated that Argentina’s media conglomerate Grupo Clarin is the lead bidder for Movistar this time round. That mentioned, Telecom Argentina—which already provides pay-TV companies in Uruguay—may be tempted to strike a deal.
Peru
Unit: Telefonica del Peru (Movistar)
Cell Subscriptions (December 2024): 11.408 million
Purchaser: TBC
Sale Agreed: TBC
Valuation: TBC
In February 2025, Telefonica del Peru (TdP, working underneath the Movistar model) introduced that it might request an Unusual Chapter Process (Procedimiento Concursal Ordinario, PCO) earlier than the Nationwide Institute for the Defence of Free Competitors and the Safety of Mental Property (Instituto Nacional de Defensa de la Competencia y de la Proteccion de la Propiedad Intelectual, Indecopi) to restructure its monetary obligations with a view to guaranteeing uninterrupted companies to its prospects.
To clarify the corporate’s resolution, TdP CEO Elena Maestre acknowledged:
“After evaluating totally different options to make sure the corporate’s monetary stability, we got here to the conclusion that voluntarily becoming a member of the PCO is one of the simplest ways to guard the availability of telecommunications companies to Peruvians.”
Information reviews indicated that the telco sought to barter a sale as its most well-liked plan of action, however no appropriate patrons could possibly be discovered. Telefonica is retaining its choices open, nevertheless, mandating Rothschild to supervise any takeover provides for its Peruvian subsidiary.
With the telco allegedly $1.358 billion in debt—of which roughly half is owed to the Peruvian treasury—any purchaser must comply with tackle TdP’s debt mountain earlier than arranging a deal. As such, the thought of a debt-for-equity swap has been mooted, permitting the corporate’s collectors to imagine management of the enterprise.
Any Different Enterprise?
Chile, Ecuador, and Venezuela have been conspicuous by their absence amid widespread reviews of asset gross sales throughout Latin America.
Again in January 2021, reviews emerged that Telefonica was in superior talks to promote Telefonica Moviles Chile (Movistar) for an undisclosed price, though any such deal failed to return to fruition. At that juncture, Liberty Latin America (LLA)—the dad or mum firm of Chilean ISP VTR—and rival full-service supplier Claro Chile had been listed as the principle candidates for buying the telco, though Entel and WOM weren’t dominated out.
In the meantime, in Ecuador, the Company for Regulation & Management of Telecoms (ARCOTEL) briefly prolonged Telefonica Ecuador (Otecel)’s cellular concession for a sixth time in February 2025 whereas the events stay in negotiations over its renewal.
In accordance with the ARCOTEL decision issued on February 14, the newest extension shall be legitimate “till the brand new enabling title is signed, or it’s determined to not renew the concession contract; situations that have to be met inside three months (i.e. earlier than 15 Might 2025), which if essential shall be prolonged by settlement of the events underneath the identical situations as the current extension.” In 2019, the corporate was valued at EUR800 million ($881.8 million) amid takeover curiosity, but it surely stays to be seen whether or not it’ll pique anybody’s curiosity once more.
Lastly, in Venezuela—a market that holds restricted enchantment for worldwide buyers as of late—Telefonica has given no indication that it’s planning an exit. In January 2025, Telefonica Venezolana (Movistar) bid $37 million for a 2×20MHz block of 5G-suitable spectrum within the 2.5GHz band forward of a deliberate 5G rollout. Certainly, the corporate claimed that the deployment exercise will kind a part of a two-year $500 million funding program.
