Background on Telefónica and 1&1
Telefónica, a leading telecommunications company based in Spain, is currently evaluating the possibility of acquiring 1&1, a prominent German internet service provider (ISP). This potential move comes after 1&1 announced a new wholesale agreement with Vodafone in August 2023, which negatively affected Telefónica’s stock performance.
Impact on Telefónica’s Stock
According to the German newspaper Handelsblatt, Telefónica is exploring this acquisition as one of several strategies to redefine its relationship with 1&1, which was previously one of Telefónica’s major wholesale clients until August 2023.
As a result of this news, Telefónica’s stock price surged more than 7% in the Frankfurt Stock Exchange on Monday. By midday, Telefónica’s shares had risen 2.25% to €4.60, driven by the potential acquisition of 1&1.
Telefónica’s Strategic Moves
In addition to considering the acquisition of 1&1, Telefónica is also searching for a replacement for its current managing director in Germany, Markus Haas. The company is set to unveil its new strategic plan on November 4, which is expected to detail Telefónica’s plans for strengthening its position in Europe, focusing on Spain, Germany, the United Kingdom, and Brazil.
Another rumored strategic move involves Telefónica potentially acquiring Vodafone in Spain, which is currently under the control of British investment firm Zegona. Telefónica has declined to comment on the information published by Handelsblatt.
Key Questions and Answers
- What is Telefónica considering? Telefónica is evaluating the acquisition of 1&1, a major German internet service provider.
- Why is this significant? 1&1 was previously one of Telefónica’s key wholesale clients, and the potential acquisition could help redefine their relationship following 1&1’s new agreement with Vodafone.
- How has this news affected Telefónica’s stock? Following the report, Telefónica’s shares surged over 7% in the Frankfurt Stock Exchange on Monday.
- What other strategic moves is Telefónica considering? Telefónica is also searching for a new managing director in Germany and may potentially acquire Vodafone in Spain.
- When will Telefónica present its new strategic plan? The company is set to unveil its new strategic plan on November 4.
