Rocket Lab Buys Iridium for $8B to Finally Build a SpaceX Clone
Tired of watching Elon Musk play god in orbit, Rocket Lab is pulling out the ultimate cheat code: buying an entire satellite empire. Because why build a constellation from scratch when you can just buy one ready-made?
The transaction is structured so that Iridium shareholders get a mix of cash and stock, specifically $27 in cold hard cash plus shares of Rocket Lab, bringing the total value to $54 per share. This massive takeover is expected to officially wrap up by mid-2027.
To fund this galactic shopping spree, Rocket Lab secured a massive $3.6 billion loan from Deutsche Bank and Wells Fargo, while planning to cover the rest with its own cash reserves and even more debt.
By combining its own rocket-manufacturing capabilities with Iridium's global L-band network, licenses, and existing subscriber base, the company is aiming to copy the exact playbook used by SpaceX. It turns out that building rockets is only half the battle; the real money is in selling the internet access that those rockets put into space.
Wall Street immediately reacted to the news, pushing Rocket Lab shares up by 10% and sending Iridium stock soaring by 22%, continuing a massive rally that had already doubled the satellite firm's value earlier this year.
It seems the era of just launching other people's stuff is officially boring. Now, every space startup wants to own the entire pipeline from the launchpad to the user's phone, even if it means drowning in billions of dollars of bank debt just to keep up with the cool kids in the industry.
Source: Reuters
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