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Telefónica 1996–2000
Four years in which a newly privatised company became a multinational group spanning telecommunications, the internet and content.
During his time as chairman of Telefónica.
June 1996
The starting point
Juan Villalonga Navarro was appointed chairman of Telefónica on 7 June 1996, in the midst of the company's privatisation. His goal was to strengthen Telefónica's capital base and place it among the world's largest companies by market value, diversifying its businesses and widening its geographic reach.
Telefónica was organised around a parent company and specialised subsidiaries by business line, which were listed separately, such as Terra and TPI. The company also unveiled a new brand identity, presented in São Paulo after the acquisition of Telesp.
The transactions that changed the company
- 1996Vía DigitalDigital satellite television platform.
- 1997Antena 3 TelevisiónAcquisition of a 25% stake.
- 1998Recoletos and radio20% of Recoletos and some one hundred radio stations.
- 1999Terra IPOShares rose 213% on the first day.
- 2000Operation VerónicaControl of the subsidiaries in Argentina, Peru and Brazil.
- 2000EndemolAcquired for €5.5 billion in shares.
2000
Latin America and Operation Verónica
In 2000 he launched Operation Verónica, a share exchange to buy out the minority shareholders of Telefónica de Argentina, Telefónica del Perú, Telesp and Tele Sudeste. It was the largest acquisition ever made by a Spanish company in Latin America and gave Telefónica control of its main subsidiaries in the region.
1998–2000
The internet: Terra Networks
In 1998 he created Telefónica Interactiva, which became Terra Networks, the group's internet portal, which grew by acquiring local companies in Spain and Latin America. Terra went public in 1999, rising 213% on its first day, and joined the Ibex 35 in January 2000. That year it acquired the US search engine Lycos, taking Terra into new markets.
1996–2000
Content and media
In 1996 Telefónica launched Vía Digital, its digital satellite television platform. In 1997 it acquired 25% of Antena 3 Televisión and in 1998 20% of Recoletos and some one hundred radio stations. In 2000 it bought the Dutch producer Endemol, one of Europe's largest, for €5.5 billion in shares.
July 2000
The departure
In June 2000 a Madrid newspaper reported that Villalonga had used inside information. On 26 July 2000 he resigned before the board of directors and was succeeded by César Alierta. In August 2000 Spain's securities regulator, the CNMV, cleared him of those accusations.