Rocket Lab CEO says $8 billion Iridium deal starts applications push

Rocket Lab CEO Peter Beck said the company’s planned acquisition of Iridium Communications is the start of a broader push into space applications, targeting satellite IoT, direct-to-device connectivity, positioning, navigation and timing, defense, aviation and maritime safety instead of mass-market broadband. On Rocket Lab’s second-quarter earnings call, Beck said Iridium’s globally coordinated L-band spectrum is not well suited for broadband and indicated competing directly with Starlink and Amazon’s Leo effort would be difficult. Rocket Lab agreed in June to acquire Iridium in a cash-and-stock transaction valued at about $8 billion in enterprise value, with closing expected in mid-2027 subject to shareholder and regulatory approvals. The comments came as Rocket Lab reported second-quarter revenue of $234.07 million, above the $231.35 million consensus estimate, a loss of 8 cents per share versus an expected 7-cent loss, record backlog of $2.36 billion, and about $2.13 billion in cash and cash equivalents, while forecasting third-quarter revenue of $250 million to $265 million, above the $238.53 million analyst estimate, and an adjusted EBITDA loss of $17 million to $23 million. Shares closed at $80.04 on Monday, fell 9.6% to $72.36 in Tuesday premarket trading, and were later up 2.24% at $81.80 on Wednesday, while analysts kept mixed views even as some raised price targets.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.