Rocket Lab to buy Iridium for $8B in Starlink challenge

Rocket Lab has announced its acquisition of Iridium Communications in an $8 billion deal that would give the launch company ownership of a satellite network serving the planet's most remote locations.

Rocket Lab acquires Iridium's 80-satellite constellation. The purchase includes Iridium's network of 80 satellites along with its wireless spectrum. Rocket Lab stated the deal would deliver an immediate foothold in direct device communications, internet of things networks, global positioning, navigation and timing services for major infrastructure providers, and military satellite contracts it already services.

Iridium's network has not grown for some time because of the company's financial troubles. Rocket Lab committed to build upon the existing network to scale into untapped markets and pioneer new space-based services for global customers.

The move targets competition from Starlink and Amazon's Leo. Rocket Lab aims to create its own satellite internet network to compete with SpaceX's Starlink. The deal mirrors a trend among would-be rivals that have bought extra capacity after Starlink's growing adoption and SpaceX's rising valuation.

In April Amazon announced a merger between its Leo satellite internet service and Globalstar. Globalstar supplies the satellite backbone for Apple's emergency SOS feature.

Iridium's past role in satellite connectivity for phones. Iridium previously partnered with Qualcomm on Snapdragon Satellite, an alternative to Apple's space-based emergency SOS. The program ended in 2023 after phone manufacturers declined to adopt it. Only the Pixel 9 series now offers mainstream satellite connectivity.

Regulatory approval remains required. The transaction must clear regulatory hurdles before it closes. If completed, Rocket Lab would own satellites that connect some of the most remote locations on Earth. The company described the purchase as a way to own both the launch capability and the satellites it sends into orbit.