Rocket Lab to buy Iridium for $8 billion in cash-and-stock deal, challenging SpaceX in satellite comms

The June 29 announcement gives Rocket Lab control of Iridium's 66-satellite LEO network, globally licensed L-band spectrum, and 2.55 million subscribers; Iridium shareholders receive $27 cash plus Rocket Lab stock for each share, valuing the deal at roughly $54 per share

Summary

Rocket Lab agreed on June 29 to acquire satellite communications company Iridium in a cash-and-stock transaction valuing Iridium at roughly $8 billion, or $54 per share ($27 cash plus Rocket Lab stock). The deal gives Rocket Lab Iridium's 66-satellite low-Earth orbit network, globally licensed L-band spectrum, and more than 2.55 million subscribers across government, defence, aviation, maritime, and commercial markets. Rocket Lab secured a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo for the cash component. The transaction is expected to close in mid-2027 pending regulatory and Iridium shareholder approval.

Why it matters

The acquisition positions Rocket Lab as a vertically integrated launch-and-connectivity company with a global spectrum licence that no competitor can easily replicate, placing it in direct competition with SpaceX's Starlink for government and commercial satellite communications contracts.

What to watch

Iridium shareholder vote and FCC/regulatory review timeline.
How SpaceX and other LEO operators respond in government contracting.
Whether Rocket Lab refinances the bridge loan before mid-2027 close.