Rocketlab acquires Iridium
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Rocket Lab will acquire Iridium for about $8.0 billion in a cash and stock deal.
Rocket Lab (Nasdaq: RKLB) will acquire Iridium (Nasdaq: IRDM) for $54 per share, implying an enterprise value of about $8.0 billion. The cash-and-stock deal unites Rocket Lab's launch and satellite manufacturing with Iridium's L-band satellite network, spectrum, and 2.55 million subscribers. Rocket Lab gains an entry into space-based services including IoT, direct-to-device, and PNT. The transaction is expected to close in mid-2027. Rocket Lab has secured $3.6 billion in bridge loan commitments from Deutsche Bank and Wells Fargo.
What commenters are saying
Commenters question the valuation gap: Rocket Lab (market cap ~$57B) is buying Iridium (market cap ~$5.5B, transaction value $8B). Some argue the deal makes strategic sense due to Iridium's spectrum and profitable subscriber base. Others note Rocket Lab is issuing significant debt. Debate emerges over Iridium's relevance as the market moves to direct-to-device satellite services for standard phones, though supporters highlight Iridium's power-efficient terminals and upcoming 5G NTN Direct capabilities.