Rocket Lab agrees to acquire satellite operator Iridium
Money MovesAn $8 billion cash-and-stock deal would let one company build, launch, and run its own satellite network in a direct challenge to SpaceX's Starlink
June 29th, 2026: Rocket Lab agrees to buy IridiumNew here? Follow stories to track developments over time. Create a free account to get updates when stories you care about change.
Overview
Updated Jun 29Iridium nearly vanished. In 2000, investors bought its satellite network out of bankruptcy for about $25 million. On June 29, 2026, Rocket Lab agreed to buy the same company for roughly $8 billion.
The combined firm would design, build, launch, and operate its own satellites. That full-stack model is what made SpaceX's Starlink dominant. Rocket Lab is now betting it can copy the formula, and it would inherit Iridium's 66-satellite network, its global radio spectrum, and 2.55 million subscribers to do it.
Why it matters
If the deal closes, one more company can build and fly entire satellite networks itself, giving SpaceX its first vertically integrated rival.
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A launch and spacecraft company that flies the small Electron rocket and is developing the larger, partly reusable Neutron.
Operates a 66-satellite network that covers the entire planet and sells voice, data, and tracking services.
Timeline
November 1998 June 2026
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Rocket Lab agrees to buy Iridium
Latest DealBoth boards unanimously approve an $8 billion cash-and-stock deal at $54 per share, a 24% premium. The deal is expected to close in mid-2027.
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Beck cuts his salary to $1
StatementRocket Lab's founder amends his contract, reducing pay to $1 and waiving future bonuses.
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Iridium completes new constellation
MilestoneIridium finishes deploying its second-generation 66-satellite network, launched on SpaceX Falcon 9 rockets.
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Rocket Lab founded
OriginPeter Beck starts Rocket Lab in New Zealand, aiming to make small-rocket launches frequent and cheap.
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Network bought out of bankruptcy
RescuePrivate investors acquire the satellite network for about $25 million and restart operations.
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Iridium files for bankruptcy
CollapseDemand for expensive satellite phones falls far short of forecasts. The company collapses under heavy debt.
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Iridium starts commercial service
OriginMotorola's satellite-phone network goes live, promising calls from anywhere on Earth.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
Iridium's bankruptcy and rescue (1999-2000)
Motorola built the original Iridium network for billions of dollars, betting that travelers would pay for satellite phones. Demand never came, and Iridium filed for bankruptcy in 1999. The satellites nearly fell from orbit before private investors bought the whole system in 2000 for about $25 million.
The rescued company refocused on government, maritime, and remote-industry customers instead of consumers.
Iridium recovered, deployed a new constellation, and grew to millions of subscribers worth roughly $8 billion to Rocket Lab.
The same network once sold for $25 million is now being bought for around $8 billion. The gap shows how much the value of satellite connectivity and spectrum has changed.
Northrop Grumman buys Orbital ATK (2017-2018)
Defense contractor Northrop Grumman agreed to buy Orbital ATK, a maker of rockets and satellites, for about $9 billion. The Federal Trade Commission worried Northrop could withhold rocket motors from rivals once it owned both the parts and the missiles that used them.
Regulators cleared the deal in 2018, but only after Northrop agreed to supply rocket motors to competitors on fair terms.
The case set a template for reviewing vertical mergers in aerospace, where one firm controls multiple layers of the supply chain.
Rocket Lab buying Iridium is also a vertical deal, joining launch, manufacturing, and network operations. Regulators may again ask whether one owner of many layers could squeeze rivals.
Viasat acquires Inmarsat (2021-2023)
Satellite-internet provider Viasat agreed to buy British operator Inmarsat for about $7.3 billion to bulk up against new low-orbit networks. The deal needed approval from regulators in several countries, including a deep review by Britain's competition authority.
Approval took about 18 months, far longer than first hoped, before the deal closed in 2023.
The combined company gained scale but still faced fast-growing competition from Starlink and other low-orbit systems.
It shows how long cross-border satellite mergers can take to clear. Rocket Lab's mid-2027 target leaves roughly a year for a similar review.
