Rocket Lab CEO Puts Iridium Deal Alongside SpaceX And Amazon’s Spectrum Bets: ‘You Can’t Just Magic Up Spectrum’
Yahoo Finance ·
Beck says Iridium’s spectrum is the key prize in the proposed acquisition, pointing to similar bets by SpaceX and Amazon.He said Iridium’s L-band spectrum could support reliable defense communications and potentially offer a harder-to-jam alternative to GPS.Iridium shareholders will vote on the deal on Thursday, with Rocket Lab expecting it to close in mid-2027.As Iridium Communications (IRDM) shareholders prepare to vote on Rocket Lab’s (RKLB) proposed acquisition, CEO Peter Beck says the deal would give the launch and satellite maker a prized asset already attracting the attention of SpaceX and Amazon: spectrum.RKLB stock jumped 3% on Tuesday to $71.98, logging its second straight session of gains. Shares are also up nearly 1% overnight late Tuesday. Why Iridium’s Spectrum Matters To RKLB“The one thing that you need to be able to do communications is spectrum,” Beck said in an MTS interview. “Spectrum is physics. You can't just magic up spectrum.”Beck pointed to SpaceX and Amazon’s spectrum investments to explain why Rocket Lab wants Iridium. The deal would add satellite communications services to a business that already builds spacecraft and launches rockets. “I probably shouldn't have called it Rocket Lab. I should have probably called it Space Lab,” Beck said. “The rocket always steals the show.” He said that bringing launch, spacecraft and services under one roof could cut the cost and time required to deploy new networks. In his “back of the napkin calculation,” Beck estimated that Rocket Lab could have developed and deployed Iridium’s constellation for about $350 million, compared with his estimate of $3 billion for Iridium. He also suggested such a project could take 12 to 24 months, rather than more than five years. Beck called Iridium’s L-band spectrum “a really loud voice” that can carry through rain and buildings, making it valuable for defense and safety-critical communications. He also raised its potential use for an alternative positioning service, saying the signal could be 1,000 times stronger than GPS and harder to jam. Iridium shareholders are scheduled to vote on the merger on Thursday. Rocket Lab has secured the cash needed for the proposed acquisition after completing a $1.944 billion share sale and terminating its earlier $3.6 billion bridge-financing commitment. It expects the deal to close in mid-2027.RKLB’s Space Force Bet Moves Forward The company is pursuing the same build-launch-operate model in national security. In a recent X post, Rocket Lab said it had completed a program kickoff for Space-Based Airborne Moving Target Indicator (SB-AMTI) demonstrations for the U.S. Space Force. It said it would deliver Flatellite spacecraft with sensing tech to help the military track airborne threats.The kickoff follows a $397 million Space Force award announced last month. Rocket Lab is contracted to develop, launch and operate multiple Flatellites, with its yet-to-fly Neutron rocket designated to carry them. The contract includes an option for additional spacecraft, but Rocket Lab has not disclosed a satellite count or launch date.SpaceX received a separate $4.16 billion SB-AMTI award in May. The Space Force has said it plans to use multiple vendors for the broader architecture, giving Rocket Lab a role alongside the much larger initial SpaceX effort.How Do Retail Traders Feel About RKLB?On Stocktwits, retail sentiment for RKLB slipped to ‘bullish’ from ‘extremely bullish’ levels a day ago amid ‘high’ message volume.RKLB sentiment and message volume as of September 22 | Source: StocktwitsOne bullish user said, “$RKLB 100th Launch coming. Neutron progressing. Iridium. Backlog increasing. What's not to love?”https://stocktwits.com/ItsMeeeeee/message/664780450Another user said, “$RKLB Holding $70+ on serious volume. IRDM vote Thursday. FCC + Neutron catalysts stacking. Breakout structure intact. Catalysts are converging — stay positioned, because the next leg could move fast.”https://stocktwits.com/numbericons/message/664841448RKLB stock has risen 3% year-to-date.For updates and corrections, email newsroom[at]stocktwits[dot]com.Read Next: VKTX Stock On Track To Beat LLY, NVO This Month After Obesity Drug Data — Can Viking Win Over Wegovy And Zepbound Users?
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