Rocket Lab Buys Iridium for $8 Billion to Challenge Starlink
Updated
Updated · The Motley Fool · Jul 5
Rocket Lab Buys Iridium for $8 Billion to Challenge Starlink
3 articles · Updated · The Motley Fool · Jul 5
Summary
$8 billion will buy Iridium Communications in a half-cash, half-stock deal that Rocket Lab expects to close in the first half of 2027.
The acquisition pushes Rocket Lab beyond launch services into satellite communications, where Iridium's mobile network could help it compete more directly with SpaceX's Starlink.
Iridium adds profitability as well as scale: it posted about $114.4 million in net profit last year, while Rocket Lab reported a $198.2 million net loss.
Rocket Lab is entering the deal from a position of rapid growth, with first-quarter sales up 63.5% to $200.3 million and its stock still up about 187% over the past year despite recent volatility.