The deal positions Rocket Lab to compete directly with SpaceX’s Starlink in satellite internet services and military contracts.
Rocket Lab announced an $8 billion acquisition of Iridium Communications, aiming to vertically integrate satellite launch, manufacturing, and internet services. The move targets SpaceX’s Starlink, which leads the sector with 10 million subscribers and $11.4 billion in annual revenue.
Iridium brings a global satellite constellation and L-band spectrum rights, valued at billions in today’s market. The combined entity will serve civilian and U.S. military markets, intensifying competition in the space economy. Iridium generated $872 million in revenue last year.
SpaceX’s $1.75 trillion market cap dwarfs Rocket Lab, but the acquisition signals a strategic shift toward direct rivalry in satellite connectivity. Market reaction to the deal remains unclear as space economy stocks face broader pressure.