Rocket Lab is buying Iridium’s satellite network for $8 billion to take on SpaceX

# Rocket Lab is buying Iridium’s satellite network for $8 billion to take on SpaceX Source: [https://www.theverge.com/science/958891/rocket-lab-iridium-acquisition-satellite-communications](https://www.theverge.com/science/958891/rocket-lab-iridium-acquisition-satellite-communications) [](https://www.theverge.com/authors/emma-roth) Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more\. Previously, she was a writer and editor at MUO\. Rocket Lab, the space company best known for its[small satellite launcher](https://www.theverge.com/2023/7/18/23798686/rocket-lab-electron-reusable-satellite-launch)Electron, has[announced plans to acquire](https://www.prnewswire.com/news-releases/rocket-lab-to-acquire-iridium-in-historic-deal-creating-a-fully-vertically-integrated-space-powerhouse-primed-for-growth-302813075.html)Iridium Communications for $8 billion\. The deal will combine Rocket Lab’s launch services and spacecraft manufacturing with Iridium’s satellite\-based communications network, putting it in a better position to challenge SpaceX\. Iridium offers communications services to over 2\.5 million subscribers around the globe\. Its users tap into Iridium’s constellation of 66 low\-Earth orbit satellites and L\-band spectrum to maintain contact with people on ships, aircraft, and in other remote locations\. Iridium partnered with SpaceX to[launch its constellation of NEXT satellites](https://www.theverge.com/2019/1/11/18177186/spacex-falcon-9-iridium-8-next-constellation-launch-watch-live)in 2019\. In[a video about the acquisition](https://www.youtube.com/watch?v=63w39z-Emj8), Rocket Lab CEO Sir Peter Beck says the deal will offer a “shortcut” for the company to build a satellite network\. “They have highly valuable spectrum, which is very difficult to come by,” Beck says\. “They have millions of customers, and, of course, they’re a trusted government provider\.” Beck adds that it’s a “highly profitable business” and that the company is “not investing in hopes and dreams\.” The move[mirrors SpaceX’s Starlink push](https://www.cnbc.com/2026/05/21/spacex-starlink-growth-profit-nasdaq-ipo.html), which is currently the company’s only profitable business\. Rocket Lab aims to build upon Iridium’s network and help deploy its next generation of satellites, which will include direct\-to\-device services that the space company says “will grow into an important new capability for U\.S\. national security and emergency response\.” **Follow topics and authors**from this story to see more like this in your personalized homepage feed and to receive email updates\. - Emma Roth