The Spanish business that Vodafone sold as ballast is now worth three times as much. Zegona has shown that the problem was the owner
according to further Populi Voicea medium with a good track record in telecom exclusives, Telefónica has started talks with Zegona to acquire Vodafone Spain. The negotiations are recent (just a few weeks) and it was Movistar who picked up the phone first. Telefónica wants to close the operation in the first half of 2026. The rumors come from months ago. The problem is that arrive late, and that has a price. A little more than two years ago, Zegona bought Vodafone Spain for about 5,000 million euros. Vodafone (the British parent) was selling a problematic asset: It was the third operator in a market of four. He was caught between the scale of Telefónica and the agility of the low-cost He inherited a network that required constant investment. And he also inherited a tarnished reputation after years of complaints. For the British group, Spain was a drain of money and effort. For Zegona, a poorly managed gold mine. And in just two years, the fund has proven that he was right: Has returned to its shareholders 1.4 billion euros in dividends (28% of what was paid by Vodafone Spain). Has reduced the number of shares in circulation by 69%. And yet its current capitalization is around 3.6 billion. For fund shareholders, the return has been spectacular: The stock went from 345p when they bought Vodafone (less than 100 when they announced their intentions) to over 1,565p now. It has multiplied by 4.5 in two years. Vodafone Spain generates around 4.5 billion annual revenues and, with more focused management than before and without the bureaucracy of a global giant, it has become a profitable operation that Zegona can continue to exploit… or sell to the highest bidder. Telefónica is now negotiating from a weak position. It needs the operation (Marc Murtra has repeated that Movistar must lead the consolidation of the Spanish market) and the market knows it. An ERE of 4,500 people has just closed. And while Telefónica prepared the house to add more furniture, its price has fallen 27% since the end of October. Zegona, however, its value has skyrocketed. The price of this indecision is between 2,000 and 7,000 million extra euros. regarding what the purchase of Vodafone Spain would have cost in 2023. Zegona is in no hurry. It can wait, it can squeeze, it can even stay as it is. Telefónica now cannot afford that luxury because buying Vodafone Spain is not an expansionist move, it is an almost defensive necessity: needs critical mass before Europe forces further consolidation where Movistar is the main course, not the diner. But when negotiating is a necessity and the other side knows it, the price stops being a variable and becomes a toll. If the operation crystallizes, it will create a giant with more than 45% of the Spanish market, great cost savings by eliminating duplications (headquarters, networks, contracts…) and intense regulatory scrutiny from Brussels. Although not as brutal as it would have been with Vestager because Ribera has another look. Telefónica knows it and so does Zegona. The difference is that one is late and the other can afford to wait. That changes everything in a negotiation. In Xataka | The great dilemma of Spanish telecos: either they become giants or China swallows them Featured image | Vodafone, Telephone
