Rocket Lab Seeks Iridium Acquisition Amid Stock Collapse

Rocket Lab is seeking to acquire satellite internet provider Iridium Communications in an 8 billion dollar deal consisting of half stock and half cash. The move aims to provide an immediate boost in positive cash flow to offset a negative free cash flow of 371 million dollars recorded over the last 12 months.

The acquisition bid comes as the company's shares have declined 57 percent from recent highs, reducing its market capitalization to 38 billion dollars. Despite the stock collapse, the company is executing an aggressive growth strategy to compete with Space Exploration Technologies Corp., centered on the development of the larger Neutron rocket. The Neutron is expected to debut in late 2026 or early 2027.

Rocket Lab currently maintains a 2.3 billion dollar backlog driven by its Electron rocket launches and its space systems segment. This segment recently secured a contract with the United States Space Force to build geostationary satellites.