Rocket Lab buys Iridium in $8B deal, to expand beyond launches
Rocket Lab has agreed to acquire satellite communications company Iridium in an $8 billion deal, marking a major expansion beyond its core launch business. The acquisition is expected to close in 2026 and will give Rocket Lab control of Iridium's operational satellite network.
Background
- Rocket Lab (founded 2006, NZ/US) is a space company best known for its small Electron rocket that launches satellites. It has been trying to grow beyond just launch services into building spacecraft components and entire satellites.
- Iridium Communications owns and operates a constellation of 66 cross-linked satellites that provide global voice and data coverage (think: satellite phones for remote areas, aviation, maritime). It is one of the few profitable satellite services companies.
- This is a major strategic shift: Rocket Lab is essentially buying an existing, revenue-generating satellite network instead of building one from scratch. The deal values Iridium at roughly $8B, a significant premium over its market cap before the announcement.
- The combination would create a vertically integrated space company — one that builds rockets, builds satellites, and now also operates a global network and sells services directly to end users. This mirrors what larger rival SpaceX has done with its Starlink internet constellation.