$8B Iridium Deal and $11.6B Globalstar Purchase Tighten Satellite Race
AMZN•Rocket Lab announced an $8 billion acquisition of Iridium at $54 per share, intensifying competition with Amazon’s $11.6 billion Globalstar purchase for direct-to-device satellite services. SpaceX’s IPO saw record 1.8 million options contracts and briefly outpaced Amazon by market cap, highlighting potential retail FOMO shifts.
1. Rocket Lab’s $8B Iridium Acquisition Intensifies Competition
Rocket Lab is acquiring Iridium for $8 billion, paying $27 in cash and $27 in shares for each $54 share. The deal, backed by $3.6 billion in financing from Deutsche Bank and Wells Fargo, grants Rocket Lab control of 66 low-earth-orbit satellites serving 2.55 million subscribers, directly challenging Amazon’s planned Globalstar services.
2. Amazon’s $11.6B Globalstar Purchase Advances Satellite Plans
In April, Amazon agreed to acquire Globalstar for about $11.6 billion to expand its direct-to-device smartphone and satellite broadband offerings. This purchase complements Amazon’s Project Kuiper constellation and positions it to compete more directly with Rocket Lab and SpaceX in the emerging mobile satellite market.
3. SpaceX IPO Outpaces Amazon by Market Cap
SpaceX’s blockbuster IPO generated 1.8 million options contracts on its first trading day, breaking all single-stock records and briefly valuing SpaceX above Amazon. The surge in retail call buying and large hedging orders underscores shifting investor focus toward newly public space ventures, with potential implications for demand in Amazon’s satellite initiatives.
