Telefónica, the Spanish telecommunications giant, has completed the sale of its remaining 0.7% stake in BBVA, netting an impressive 608 million euros. This transaction comes as the company navigates financial turbulence, including a projected loss of 4.318 billion euros in 2025 due to the impacts of a workforce reduction plan (ERE) and the divestment of its Latin American markets. By selling this stake, Telefónica not only gains a substantial cash influx but also reclassifies a profit of 119 million euros into its reserves, which can provide more liquidity as it reorganizes its operations.

The decision to divest from BBVA reflects Telefónica's broader strategy of shedding non-core assets over the last few years, aiming to streamline its business model and focus on its telecommunications operations. As BBVA's stock value significantly increased during the time of the sale, driven in part by its moves to acquire Sabadell, Telefónica capitalized on this appreciation to execute a profitable exit. At the end of 2024, the bank's stock had risen by 112%, indicating a perfect timing for the sale and reinforcing the financial benefits of this decision.

This divestment is part of Telefónica's ongoing efforts to stabilize its finances and adapt to changing market conditions. The company is facing pressures from various fronts, including significant indemnities it must pay to former employees. As it continues to reallocate resources and focus on its core telecommunications business, analysts will be watching closely to see how this sale impacts Telefónica's strategic direction and its ability to rebound from recent losses in a competitive landscape.