Iridium Shareholders Back Rocket Lab Merger as Cash Gap Remains
Iridium stockholders approved Rocket Lab's cash-and-stock takeover on September 24, with 99.6% of votes cast in favor; regulatory approvals remain before a targeted mid-2027 close. Rocket Lab used $371.2 million in free cash flow over the four quarters through June 2026, while Iridium generated $288.3 million, covering roughly 78% of that burn. The deal gives each Iridium holder $27 in cash plus Rocket Lab shares, a package valued at $54 per share.
Iridium's shareholders overwhelmingly cleared the merger on Sept. 24, with 99.6% of ballots cast supporting it and about 81% of all shares represented. The consideration gives owners $27 per share in cash plus Rocket Lab equity, subject to a collar, and was valued at $54 per share; Rocket Lab closed at $74 on Sept. 25. Regulatory sign-off and a mid-2027 target close remain.
Over the year through June 2026, Rocket Lab's free cash outflow reached $371.2 million, while Iridium produced $288.3 million, covering about 78%. In Q2 alone, Rocket Lab used $110.1 million and Iridium generated $92.3 million, leaving an $18 million gap. Iridium's quarterly revenue stayed within $212.8 million to $226.9 million for eight periods.
The combination could affect satellite-communications customers, investors, and employees tied to both firms. If completed, Rocket Lab may gain steadier cash from Iridium's network while Iridium users could see service continuity or eventual changes. Rocket Lab's launch timeline, especially Neutron, may shape whether the merged company can fund operations without further dilution. Broader space and telecom markets may watch whether consolidation alters competition, pricing, and access to resilient connectivity, though outcomes remain uncertain.