WASHINGTON, — Rocket Lab’s proposed $8 billion acquisition of Iridium Communications is awaiting regulatory approval from the U.S. Federal Communications Commission (FCC), following concerns raised by competitors including SpaceX, Globalstar and Ligado Networks.
Announced in June 2026, the deal will combine Rocket Lab’s satellite manufacturing and launch capabilities with Iridium’s established global communications network. Under the agreement, Iridium shareholders will receive $27 in cash plus Rocket Lab shares, with a notional value of $54 per share.
Iridium operates a 66-satellite low Earth orbit (LEO) constellation, holds global L-band spectrum rights and serves more than 2.5 million subscribers across government, defense, aviation, maritime and commercial markets. The company generated $871.7 million in revenue during 2025.
The acquisition would give Rocket Lab control of Iridium's satellite network and recurring communications business. Both companies expect vertical integration to reduce launch and network upgrade costs, improve competition and accelerate new services. Their planned next-generation Iridium constellation is expected to feature approximately 20 times more communications beams per satellite.
Competitors Raise Concerns
Although the deal cleared the U.S. antitrust review in August 2026, FCC authorization remains pending.
SpaceX has asked the FCC to examine longstanding disputes involving potential interference between Iridium operations and Starlink gateway stations. Ligado Networks has also raised concerns about Iridium's regulatory activities and their impact on competition. Neither company has formally opposed the acquisition.
Globalstar has focused on Rocket Lab's existing supplier relationship with the company. Rocket Lab manufactures satellite platforms for Globalstar through an MDA Space subcontract valued at approximately $143 million for 17 platforms. The first eight satellites reached orbit in August 2026.
Globalstar argues that Rocket Lab's acquisition of Iridium, a direct competitor in mobile satellite services, could create conflicts of interest. It is concerned about possible access to sensitive technical information and preferential treatment in engineering, performance, operations and delivery schedules. Globalstar has requested closer FCC scrutiny but has not opposed the merger.
Rocket Lab Defends the Deal
Rocket Lab and Iridium argue that the concerns raised by SpaceX and Ligado existed before the acquisition agreement and should be addressed through separate regulatory proceedings. They also say competitors have not demonstrated any merger-specific harm.
The companies maintain that combining manufacturing, launch services and satellite operations will strengthen competition. They also point out that Rocket Lab currently holds no mobile satellite service spectrum and has no near-term independent entry into that market.
Iridium shareholders approved the acquisition on September 24, 2026, with 99.6% of votes cast supporting the deal. The vote represented approximately 81% of outstanding shares entitled to vote.
The FCC accepted the transfer applications on September 15 under GN Docket No. 26-257. Rocket Lab CEO Peter Beck also met FCC Chairman Brendan Carr in October to discuss the transaction.
The next FCC filing deadline for replies and oppositions is November 9, 2026. Both companies are targeting mid-2027 to complete the acquisition, subject to final regulatory approvals and other closing conditions.
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