RKLB’s Iridium Deal Draws Heat As Globalstar Echoes SpaceX Concerns — Rocket Lab Seeks Fast FCC Approval

Globalstar warned that Rocket Lab’s supplier relationship could give it an incentive to favor Iridium at Globalstar’s expense.

• Globalstar echoed SpaceX and Ligado’s concerns over Rocket Lab’s Iridium takeover, seeking closer FCC scrutiny without opposing the merger.
• Rocket Lab and Iridium argued that SpaceX and Ligado’s concerns predate the merger and belong in separate proceedings.
• The companies said the deal would lower costs, accelerate upgrades and support a constellation with 20 times as many beams per satellite.

Rocket Lab’s (RKLB) proposed takeover of Iridium Communications (IRDM) drew fresh scrutiny after Globalstar (GSAT) echoed SpaceX and Ligado’s regulatory concerns, while Rocket Lab and Iridium urged the FCC to approve the deal promptly.

Globalstar Questions Rocket Lab’s Ties To Future Rival

Globalstar warned in its Friday filing that Rocket Lab’s role as a satellite supplier could become a competitive risk if it acquires Iridium.

Rocket Lab’s work gives it access to Globalstar’s spacecraft designs, operational processes and delivery schedules. The relationship includes a $143 million subcontract through MDA to build 17 satellite platforms, the first eight of which reached orbit in August, according to Rocket Lab.

“Today, Rocket Lab’s interests align with Globalstar’s success; after it acquires Iridium, however, that same supplier relationship will give Rocket Lab both the incentive and the means to advantage Iridium at a competitor’s expense,” Globalstar said. 

The company urged the FCC to examine that potential conflict. “The Commission should require the applicants to address these specific risks rather than relying on Iridium’s general claims that integration is beneficial,” it added. Globalstar also accused Iridium of repeatedly seeking access to its licensed mobile-satellite spectrum through filings that disrupted its business and consumed FCC resources.

It pointed to a 2013 petition withdrawn in 2017 and a December 2025 petition that, according to its letter, the FCC dismissed in April 2026. Globalstar also flagged concerns about interference between Iridium’s transmissions and radio astronomy observations.

Rocket Lab Pushes Back On SpaceX And Ligado Concerns

Rocket Lab and Iridium argued in a separate joint reply from last week that SpaceX and Ligado’s concerns predate the merger and belong in other regulatory proceedings.

“Both parties concede that the issues underlying their filings predate the Transaction, and neither filing provides any basis to conclude that the Transaction would affect, much less exacerbate, those issues,” the companies said.

They said SpaceX’s concerns involve coordination of satellite ground stations, while Ligado’s relate to potential interference from its proposed operations. The companies also noted that SpaceX does not oppose the deal and said Iridium would remain subject to existing radio astronomy protections. 

Rocket Lab And Iridium Outline Network Upgrade Plans

Rocket Lab and Iridium said bringing manufacturing, launch capabilities, spectrum and satellite operations under one roof would cut costs and accelerate network upgrades.

“The Transaction will create a vertically integrated U.S. space leader that will increase competition, expand deployment of advanced space-based services, and accelerate and enhance a next-generation Iridium constellation,” they said.

Plans include improved positioning, navigation and timing services, expanded direct-to-device connectivity and a next-gen constellation with 20 times as many beams per satellite. Existing Iridium services would continue, the companies said.

They also pointed to the FCC’s approval of Amazon’s Globalstar acquisition as a precedent. The agency cleared the $11.5 billion deal last week, helping Amazon Leo’s expansion into direct-to-device services.

FCC Review Continues After Shareholder Approval

The Iridium deal was announced at $8 billion in enterprise value, with a notional offer of $54 per share comprising $27 in cash plus Rocket Lab stock under an exchange ratio subject to a collar.

Iridium shareholders approved the merger in September, with 99.6% of votes cast in favor. The companies are targeting a mid-2027 closing, subject to remaining approvals and other conditions. The next FCC filing deadline is Nov. 9, when replies to responses and oppositions are due.

How Do Retail Traders Feel About RKLB?

On Stocktwits, retail sentiment for RKLB slipped to ‘bearish’ from ‘neutral’ levels a week ago amid nearly an 850% surge in 24-hour message volumes. 

RKLB stock has declined 25% year-to-date. 

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