Telefónica Concludes 25-Year Stake in BBVA with €608 Million Sale

Telefónica has officially sold its entire 0.77% stake in BBVA, marking the end of a 25-year-long investment that began in February 2000. The sale, executed in 2025, generated €608 million in cash for Telefónica and resulted in a net capital gain of €335 million, as detailed in the company’s 2025 financial report. Additionally, Telefónica recognized €119 million in profits from financial asset revaluations related to this transaction.

With this divestment, the historic alliance between Telefónica and BBVA—initially created to establish a leading digital and financial partnership in Spanish-speaking markets—has been formally dissolved. While Telefónica exited completely, BBVA still retains a 5.007% stake in the telecommunications company; however, BBVA’s involvement is considered no longer strategic.

This shift includes BBVA's departure from Telefónica's board, signifying a change in governance. Long-standing BBVA board member José María Abril, who had served since July 2007 and renewed his term in 2022, will step down at Telefónica's General Shareholders’ Meeting scheduled for March 26, 2026. He will be succeeded by Australian executive Jane Thompson, who will join as an independent director. BBVA’s current approximately 5% ownership in Telefónica is below the 6.6% threshold needed to appoint a board representative under Spanish corporate governance rules, reinforcing their reduced role.

The transaction and governance changes reflect a broader evolution in the Spanish business landscape, where the technology-finance convergence strategy pursued by both firms has been overtaken by new market realities and players. The historic partnership, once aimed at integrating finance and technology, is now officially over as both companies pursue separate strategic paths.