Yahsat to Acquire Thuraya, Making Satellite Investment More Likely

by Bill Ostrove, Space Systems Analyst, Forecast International.


Yahsat has entered into an agreement to acquire a majority stake in Thuraya. Both companies are based in the United Arab Emirates. Yahsat primarily provides fixed satellite services (FSS), while Thuraya chiefly provides mobile satellite services (MSS).

The transaction is expected to close after customary conditions have been met and regulatory approvals have been obtained. The tender process will start shortly to offer current shareholders the option to participate in this sale.

Thuraya’s two satellites, which serve over 140 countries, will join the Yahsat fleet of three satellites, expanding the combined group’s satellite fleet to five. The combination of geostationary satellites operating in the C-, Ka-, Ku-, and L-bands will jointly cover Europe, Africa, the Middle East, South America, and Asia, providing a broad range of FSS and MSS that span voice and data communications to both commercial and government sectors.

For many years, satellite operators were rigidly divided between FSS and MSS providers. In recent years, these distinctions have begun to blur. In an attempt to capture the mobile data market , many traditionally FSS providers have tapped the MSS market. For example, satellite companies such as SES and Telesat now sell capacity to the airline in-flight broadband and shipping markets. In contrast, Inmarsat – traditionally an MSS operator – will market services to fixed oil and offshore drilling platforms.

By combining, Yahsat and Thuraya will be able to serve both satellite markets, giving the new company expanded flexibility and the ability to serve its customers.

The joined company will also have more resources to invest in new satellites. Beginning in 2016, Thuraya began a process of raising $1.1 billion to fund two next-generation high throughput satellites. However, Thuraya has not been able to raise that amount of money. The new company will likely have more resources and access to investors, improving the likelihood that the two satellites will be purchased.

Please feel free to use this content with Forecast International and analyst attributions, along with a link to the article. Contact Ray Peterson at +1 (203) 426-0800 or via email at ray.peterson@forecast1.com for additional analysis.

Forecast International offers two Space Systems Forecast products: Launch Vehicles & Manned Platforms, with reports on manned spacecraft, expendable launch vehicles and more, and Satellites & Spacecraft, with coverage ranging from microsatellites to large COMSATs – all complete with technical specifications and forecast details.  

Forecast FI Logo

About Forecast International

For 50 years, Forecast International intelligence reports have been the aerospace and defense industry standard for accurate research, analysis, and projections. Our experienced analysts compile, evaluate, and present accurate data for decision makers. FI's market research reports offer concise analysis of individual programs and identify market opportunities. Each report includes a program overview, detailed statistics, recent developments and a competitive analysis, culminating in production forecasts spanning 10 or 15 years. Let our market intelligence reports be a key part of reducing uncertainties and mastering your specific market and its growth potential. Find out more at www.forecastinternational.com

View all posts by Forecast International →