Again in early 2019, after months of hypothesis linking Telefonica to a sale of its Central American operations, the Spanish telecom large agreed to offload all 5 of its models within the area.
By the tip 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 points of the plan was Telefonica’s determination to spin off its Latin American companies—excluding Brazil.
Then-CEO José María Álvarez-Pallete said:
“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 at all times proven a powerful dedication to the area, even in its most tough moments … Our operations in Latin America have 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, lowering its contribution in recent times for various causes and regardless of the large efforts of our native groups, which have at all times proven a powerful dedication … With this operational spin-off, Telefónica begins a strategic evaluation of its portfolio in Hispanoamérica with the double goal of modulating the publicity to the area, whereas creating the situations to maximise its worth through progress, consolidation and potential company transactions.”
Within the wake of the COVID-19 pandemic, Telefonica’s quick focus in Latin America was on sealing fiber-optic joint ventures in markets reminiscent of Brazil, Chile, Colombia, and Peru. Telefonica sought to pursue “strategic alliances” to cut back the digital divide—and cut back its publicity on the similar time.
Originally of 2025, Álvarez-Pallete stepped apart to make approach for Marc Murtra. With a variety of divestments both confirmed or rumored in latest weeks, Telefonica’s unique plan to cut back its publicity within the area has lastly gathered tempo.
At present, we look at 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 an announcement confirming it could consider the tie-up, which might put 70% of the nation’s telecom sector beneath the management of 1 group.
In accordance with native information reviews, Milei—who prides himself on slicing purple 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 purple 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-about getting into the native cellular sector through an MVNO settlement. The group seeks to enhance 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 may 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 mum or dad firm of Tigo Colombia—for $400 million.
The latter firm will purchase the shareholding through its Millicom Spain subsidiary. The 2 events observe that the ultimate worth of the deal “shall be topic to the standard value changes for one of these 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 similar buy value per share supplied 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 Could.
Regardless of widespread sale hypothesis, no potential consumers have been named up to now.
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 because of the shut relationship between the 2 neighboring nations.
With the Argentina sale already confirmed, evidently the times of the Uruguayan unit are numbered.
With the Argentina sale already confirmed, evidently 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 obtained 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 presents pay-TV providers in Uruguay—is also 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 beneath the Movistar model) introduced that it could request an Extraordinary 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 providers to its prospects.
To elucidate the corporate’s determination, TdP CEO Elena Maestre said:
“After evaluating totally different alternate options to make sure the corporate’s monetary stability, we got here to the conclusion that voluntarily becoming a member of the PCO is the easiest way to guard the supply of telecommunications providers to Peruvians.”
Information reviews indicated that the telco sought to barter a sale as its most well-liked plan of action, however no appropriate consumers could possibly be discovered. Telefonica is protecting its choices open, nevertheless, mandating Rothschild to supervise any takeover presents 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 conform to tackle TdP’s debt mountain earlier than arranging a deal. As such, the concept 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 payment, though any such deal failed to return to fruition. At that juncture, Liberty Latin America (LLA)—the mum or dad firm of Chilean ISP VTR—and rival full-service supplier Claro Chile have 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) quickly 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 most recent extension shall be legitimate “till the brand new enabling title is signed, or it’s determined to not renew the concession contract; situations that should be met inside three months (i.e. earlier than 15 Could 2025), which if mandatory shall be prolonged by settlement of the events beneath 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’s going to 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 type a part of a two-year $500 million funding program.
