Rocket Lab’s acquisition of Iridium Communications creates a vertically integrated rival to SpaceX’s profitable Starlink satellite internet business.
Rocket Lab announced an $8 billion cash-and-stock acquisition of Iridium Communications, aiming to combine launch capabilities with satellite communications. The deal, expected to close mid-2025, positions Rocket Lab as a direct competitor to SpaceX’s Starlink, which currently leads the satellite internet market.
SpaceX’s connectivity segment, including Starlink, is its only profitable unit, generating $4.7 billion in revenue last year. The acquisition follows SpaceX’s recent NASDAQ debut, where its valuation was buoyed by Starlink’s growth. Rocket Lab’s move mirrors SpaceX’s strategy, raising concerns over market share erosion.
Additional competition looms as Amazon prepares to launch its own satellite internet service, Leo. Analysts suggest the deal could weigh on SpaceX’s stock as investors assess Starlink’s long-term dominance.