Rocket Lab Corp · News & developments
FCC Starts Review of Rocket Lab's Iridium Takeover as SpaceX Flags Conduct Concerns
The Federal Communications Commission accepted Rocket Lab and Iridium Communications' joint license-transfer applications for filing, initiating a formal public comment window. In Thursday afternoon trading, Rocket Lab shares are up 6% to $67.66, though Rocket Lab stock is down 18% over the past month. Meanwhile, target Iridium Communications shares moved up 0.2% to $47.36. Competitor SpaceX intervened in the docket, asking the FCC to examine Iridium's past conduct toward rival satellite operators while clarifying that it does not oppose the merger itself.
Why this matters
Clearing the FCC's procedural hurdle keeps Rocket Lab on schedule for a targeted mid-2027 close, but SpaceX's presence in the docket complicates the regulatory path. While SpaceX stopped short of petitioning to block the merger, putting historical spectrum coordination disputes on the record pressures regulators to consider operational constraints or spectrum-sharing concessions as conditions of approval. Meanwhile, the stark divergence between Rocket Lab's 6% jump and Iridium's 0.2% tick highlights the buyout mechanics: with cash and floating share terms fixing Iridium's equity valuation near its initial $6 billion level, Rocket Lab equity absorbs the transaction volatility while shouldering the regulatory workload.