On 26 January 2006 Telefónica completed its £17.7 billion (€25.7 billion) acquisition of the UK-based operator O2 which also provided mobile phone services in Germany under the O2 brand.

Following the purchase, Telefónica merged Telefónica Deutschland and O2 Germany to form the current business Telefónica Germany.

The Telefónica Group has been in the country since 1990.

Telefónica Germany, purchased competitor E-Plus on 1 October 2014.

As part of the purchase, Telefónica reduced its stake in its subsidiary to 62.1%.

Telefónica is a 100% listed company with more than 1.5 million direct shareholders.

Its share capital currently comprises 4.563.996.485 ordinary shares traded on the Spanish Stock Market (Madrid, Barcelona, Bilbao and Valencia) and on those in London, New York, Lima, and Buenos Aires.

The mobile business is run by Telefónica Móviles through the brand movistar.

It is unknown what will happen with their previous established subsidiary Telefónica Empresas, being most probable a merger with TELECOM. Telefónica signed a contract for 15 years (extendable for 10 additional years) on with the government of Costa Rica.The company is a component of the Euro Stoxx 50 stock market index.Since 1997, the Spanish government has privatized its interest in the company.According to the merger announcement, O2, which provided mobile phone services in the UK, Ireland, Germany and the Isle of Man (uniquely to the O2 group Manx Telecom also offered fixed-line services), retained its name and continued to be based in the United Kingdom, keeping both the brand and the management team.The merger became unconditional on 23 January 2006 and O2 became a wholly owned subsidiary of Telefónica.After the release of sales of broadband internet in August 2009, ANATEL expects the company's service investments to keep on par with the sales.