Why did Spain sell the Caroline Islands to Germany in 1899?

Spain sold the Caroline Islands to Germany in 1899 as part of a broader decision to withdraw entirely from the Pacific following its defeat by the United States in 1898.1

By the late 19th century, Spain’s empire was in a state of decline, and its claims in Micronesia had faced increasing encroachment from British and German settlers. Although tensions between Germany and Spain regarding these territories were mediated by Pope Leo XIII in 1886, the situation changed drastically after the Spanish-American War. Following the defeat of the Spanish fleet in the Philippines and the American seizure of Guam, Spain opted to divest itself of its remaining Pacific possessions, selling them to Germany in 1899.1