RKLB Stock Heads For Third Weekly Loss After 7 Bruising Sessions: SpaceX Raises Red Flag Over Iridium Deal

SpaceX does not oppose the deal but said Iridium’s alleged anticompetitive conduct “hangs as a cloud” over it.

• SpaceX asked the FCC to scrutinize Iridium’s conduct during its review of Rocket Lab’s proposed acquisition.
• The dispute concerns potential interference from next-gen Starlink gateways sharing spectrum with Iridium.
• Iridium defended its objections but said coordination talks with SpaceX were progressing toward a resolution.

Shares of Rocket Lab (RKLB) are poised to record their third weekly losing streak as a long-running spectrum dispute between SpaceX (SPCX) and Iridium Communications (IRDM) spilled into the regulatory review of Rocket Lab’s proposed $8.1 billion acquisition of the satellite communications provider.

RKLB stock, however, rose 2% on Thursday, snapping a seven-session losing streak, but remained down 7% for the week. 

SpaceX Raises Iridium Concerns 

SpaceX asked the Federal Communications Commission (FCC) on Thursday to examine Iridium’s conduct while reviewing applications related to the proposed change of control. “Iridium’s well-documented history of anticompetitive attacks against its competitors and American consumers hangs as a cloud over the proposed transaction,” SpaceX satellite policy associate Matthew Turk wrote in the letter.

“SpaceX does not oppose the transaction,” Turk said. “The Commission should carefully evaluate whether Iridium’s conduct is in the public interest.” The dispute involves SpaceX’s next-gen Starlink gateways, which will support gigabit-speed service. Iridium said that some proposed ground stations could interfere with its operations because the companies would share portions of the 19.4-19.6 GHz and 29.1-29.3 GHz spectrum bands.

SpaceX rejected the claims and accused Iridium of using regulatory procedures to obstruct competing services. Turk said Iridium had filed more than 50 petitions over eight months seeking to block or restrict rival satellite deployments.

Iridium has maintained that several gateways could exceed permissible interference levels “by a wide margin.” However, it said coordination talks were underway and that a resolution to the first disputed application seemed close. “Iridium has enjoyed a long and productive relationship with SpaceX,” regulatory executive Kara Azocar wrote in an earlier filing from last week. “Iridium has no interest in impeding SpaceX’s business plans.”

Iridium Merger Heads To Vote

The SpaceX filing comes the same week after Iridium issued its definitive proxy statement and Rocket Lab prospectus, formally sending the merger to a shareholder vote on Sept.24. Under the deal, each Iridium share would convert into $27 in cash and a variable number of Rocket Lab shares based on RKLB’s 10-day volume-weighted average price shortly before closing. Former Iridium shareholders are expected to own about 5% of the combined company.

The transaction initially implied an equity value of $6 billion and an enterprise value of $8.1 billion. Rocket Lab has secured a $3.6 billion bridge facility, which it may replace with longer-term debt, equity financing, or both.

Rocket Lab Wraps Neutron Fairing Tests 

Rocket Lab separately reported progress on Neutron, the medium-lift rocket expected to expand its addressable launch market. “That’s a wrap on our latest checkouts for Neutron’s reusable Hungry Hippo fairing,” the company said on X.

The payload-protecting fairing has returned to its hangar and will be integrated with Neutron’s interstage. Its two halves remain attached to the first stage, opening to release the upper stage and payload before closing for the booster’s return. 

The fairing previously endured 275,000 pounds of force during qualification testing, while its control-surface hubs were tested beyond 125% of projected flight loads. Rocket Lab is targeting a fourth-quarter pad delivery for Neutron, although Beck has warned that “the window for an end-of-year launch is narrowing.” 

How Do Retail Traders Feel About RKLB?

On Stocktwits, retail sentiment for RKLB improved to ‘neutral’ from ‘bearish’ levels a day ago amid ‘low’ message volume.

One bullish user said, “$RKLB Not making the same mistake twice, I bought years ago at 5 and 8, sold last April at 80 very nice it went up and up and up all the way to 150. This huge dip is a gift, i took 5k and made 50k now 58k back in and will see 250k before i sell again.”

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Another user said, “$RKLB buy all you can before merger goes through.  We will sky rocket over 100 and beyond”

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RKLB stock has risen 46% over the past year. 

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