Rocket Lab to Acquire Iridium, Taking on Starlink and Amazon in Satellite Internet Race

U.S.-based space company Rocket Lab is set to challenge Elon Musk’s Starlink and Amazon’s satellite internet ambitions by acquiring satellite communications provider Iridium Communications in a landmark deal valued at approximately $8 billion in cash and stock.

The two companies jointly announced the agreement on Monday, marking one of the largest acquisitions in the commercial space industry.

Once all regulatory approvals are secured, Rocket Lab will gain ownership of Iridium’s constellation of 80 satellites along with its valuable radio spectrum assets. The network is designed to provide communications coverage even in some of the world’s most remote and inaccessible regions.

Iridium is a well-established name in the satellite communications industry. The company previously partnered with Qualcomm to bring satellite text messaging capabilities to Android smartphones. However, that initiative was discontinued in 2023 after failing to gain sufficient support from smartphone manufacturers.

Expanding competition in satellite connectivity

The acquisition comes at a time when competition in the satellite broadband market is intensifying. With SpaceX’s Starlink maintaining a dominant position and a soaring market valuation, rivals are accelerating efforts to strengthen their own capabilities.

Earlier this year, Amazon announced plans to expand its satellite connectivity ambitions by merging with Globalstar to support its low-Earth orbit (LEO) satellite initiatives.

Rocket Lab Founder and Chief Executive Officer Sir Peter Beck said the acquisition would immediately enhance the company's position in space-based communications.

According to Beck, the expanded platform will enable Rocket Lab to provide a broad range of satellite services, including:

• Direct-to-device mobile communications
• Internet of Things (IoT) connectivity
• Global navigation and positioning services
• Military satellite communications

Iridium has struggled to significantly expand its satellite network in recent years due to financial constraints. Rocket Lab said it plans to modernize the existing infrastructure and introduce new satellite-based services for customers worldwide.

The transaction is expected to be completed by mid-2027, subject to regulatory approval and customary closing conditions.

//DBTech/BMT/OR//