Rocket Lab buys Iridium in an $8 billion deal to build the most formidable rival to Musk's SpaceX will it change the Ukraine war?

Date:
Fri, 03 Jul 2026 20:15:00 +0000

Description:
Rocket Lab's $8 billion Iridium acquisition creates a vertically integrated satellite company spanning launch, spacecraft and communications networks.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Rocket Lab gains rocket satellite spectrum and communications under one corporate roof Iridium brings 2.55 million subscribers and global satellite coverage capabilities Starlink may finally face competition across military satellite communications markets Rocket Lab has agreed to acquire Iridium in a transaction worth approximately $8 billion, creating one of the largest vertically integrated space companies in America.

The agreement values Iridium shares at $54 each through a combination of cash payments and Rocket Lab stock issued to shareholders. Both boards of
directors unanimously approved the transaction, which is expected to close in mid-2027 pending stockholder and regulatory approvals. Latest Videos From Watch full video here: Rocket Lab now controls almost everything The acquisition gives Rocket Lab access to Iridium's low Earth orbit network, globally coordinated L-band spectrum and more than 500 partners worldwide.

Iridium currently supports over 2.55 million subscribers using satellite communications, navigation services and emergency connectivity across commercial and government markets. You may like SpaceX could be planning to offer a Starlink mobile network for consumers Starlink and Amazon could snap up EU mobile satellite spectrum The story behind how Lithuania is perfectly aligned to capitalize on an emerging space economy

Rocket Lab already manufactures satellites and launch vehicles, while also developing the Neutron rocket for larger constellation deployment missions.

The combined business will therefore design satellites, manufacture spacecraft, launch payloads and operate communications networks using
entirely internal resources. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

Rocket Lab believes removing third party launch providers will lower deployment costs while guaranteeing orbital access as launch demand
increases.

Iridium generated revenue of $871.7 million during 2025 while reporting operational EBITDA of approximately $495 million and margins reaching 57%.

Rocket Lab secured commitments for a $3.6 billion bridge loan facility
through Deutsche Bank and Wells Fargo to support financing. What to read next FCC ruling means faster speeds and greater reliability for space satellites Say hello to Elon Musk's mega new SpaceX facility Starlink outage left 24 unmanned US Navy vessels stranded in the water

The companies expect regulatory reviews and shareholder approvals to continue before the acquisition reaches completion during the middle of 2027. Could this become a military communications alternative to Starlink? "This is a defining moment for the space industry and the start of a new era of strategic, accelerated growth for Rocket Lab and Iridium," said Sir Peter Beck, founder and CEO of Rocket Lab.

"Iridium has built the gold standard in secure, safety critical global satellite connectivity.

Iridium's direct-to-device capability, operating under the Iridium NTN Direct designation, covers denied, degraded, and compromised network environments
for national security purposes.

Rocket Labs work will now cover spacecraft manufacturing, launch, spectrum, and on-orbit communications through a single proprietary network structure.

Unlike many communications providers, Rocket Lab would also possess the ability to replenish damaged constellations using its own launch vehicles.

This makes it the most structurally complete rival to SpaceX's Starlink ecosystem that the commercial space industry has ever seen.

As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities, said Matt Desch, CEO, Iridium.

Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible. Were excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities."

Starlink has functioned as Ukraine's de facto battlefield internet, coordinating drone strikes, troop movements, and real-time intelligence sharing.

Iridium's network already operates where GPS is actively jammed or denied, which describes conditions across the eastern Ukrainian front lines.

The Iridium NTN Direct capability, once fully developed, could give Ukraine or any future conflict zone a resilient, independent communications layer outside Elon Musk's direct control. Follow TechRadar on Google News and add
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