Rocket Lab buys satellite network Iridium for $14 billion in challenge to SpaceX’s Starlink

Rocket Lab said today that Iridium has 2.55 million commercial and government customers for its broadband, satellite phone, maritime distress, air traffic control, PNT (an alternative to GPS) and internet-of-things services.

Starlink (part of SpaceX, which lost US$4.9b last year on US$18.7b of revenue) has around 10 million customers worldwide, but with more of a residential and consumer focus.

Profitable business

In 2025, Iridium’s operational earnings before interest, tax, depreciation and amortisation (ebitda) profit rose 5% to US$495m on revenue that rose 13% to US$871m.

The satellite firm’s net profit increased 1% from US$112.8m to US$114.4m.

Rocket Lab, which had its first US$1b revenue year in 2025, was recently added to the Nasdaq-100 – a basket of the US stock exchange’s 100 most valuable stocks outside of banking and finance.

Its share surge today took its market cap to US$57b.

Plans get a jump-start

“There are some really big barriers to building large successful constellations in orbit. And the first one is spectrum. Spectrum is finite and almost impossible to get,” Beck said in a social media post.

“The next thing is it takes a long time to build and launch your infrastructure, a long time to design and build your satellites, launch them, and even longer to get your first dollar of revenue.”

Buying the profitable, spectrum-rich Iridium will give Rocket Lab’s “space application” plans a jump-start.

“We believe this will be one of the most transformative deals for the space industry.”

Iridium is based in Virginia, the US state that is also home to Rocket Lab’s assembly plant and launch pad for its new, much larger Neutron rocket, due for its first flight later this year.

Rocket Lab, which recently reported US$1.2b cash on its balance sheet, said it had taken a one-year, US$3.6b bridging loan with Deutsche Bank and Wells Fargo.

The balance of the transaction funding will originate from cash reserves on Rocket Lab’s balance sheet alongside planned debt and equity instruments.

The transaction is expected to close in mid-2027, assuming regulatory approvals, including the FCC allowing Rocket Lab to take on Iridium’s spectrum.

It’s the year’s second major satellite deal. In April, Amazon bought the Apple-backed GlobalStar in a US$11.57b deal. The acquisition – due to close in the middle of next year – will complement the tech giant’s own satellite launches as it builds its “Amazon Leo” constellation to compete against Starlink.

Rocket Lab acquisitions (all USD)

2020: Sinclair Interplanetary, Toronto (satellite components) -undisclosed price2021: Advanced Solutions, Colorado (mission control software) – $40m2021: SolAero, New Mexico (spacecraft solar panels) – $80m2021: Planetary Systems, Maryland (spacecraft separation systems) – $42m2023: Virgin Orbit assets, California (incl 13378sq m production plan) – $16.1m2024: Warkworth plant abandoned by SailGP as Russell Coutts offshored – undisclosed (took on 50 staff)2025: Mynaric, Munich/California (laser comms) – $75m2026: Iridium, Virginia (satellite network operator) – $8b

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.