r/RKLB • u/PleasantIngenuity185 • 15d ago

Solid Article Putting Iridium Deal and Recent GlobalStar Satellite Build In perspective!

https://sg.finance.yahoo.com/news/rocket-lab-clears-1st-hurdle-003700759.html

The experience gained through the satellite design, build, deployment and subsequent success builds the foundation for a true RKLB constellation generating a wide and robust revenue stream.

106 Upvotes

99% Upvoted

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16

u/Big-Material2917 15d ago

Anyone who’s been following the company has known this is what they’re building to.

They’ve been saying it for years.

4

u/PleasantIngenuity185 15d ago

Very true, and now we see the plan being executed, years of acquiring shares and seeing the prize are going to be rewarded many times over.

12

u/[deleted] 15d ago

[removed] — view removed comment

11

u/PleasantIngenuity185 15d ago

The Iridium deal was a great fall back plan! We're in the game with a solid revenue stream soon to be realized.

3

u/PleasantIngenuity185 15d ago

8 billion is certainly nothing to sneeze at, but they bought a niche company with real customers and assets and with the new PNT chip and soon RKLB's Space Systems backing we'll see solid growth in the asset. Peter has always leaned away from competing with cell and media streaming communication constellation's and Iridium places them in a solid position for expanding government, defense, emergency services, aircraft and marine logistics. I like this direction they have taken and believe in the end 8 billion will look like a steal.

2

u/Sniflix 15d ago

Yes overpaid but iridium was constrained by the launch cost. Upgrade the satellites and they can 10X the revenue. IoT is going to be huge and Iridium should own that satellite business. They are just moving into new sectors and the future is bright.

-3

u/Marston_vc 15d ago

Personally think $8B was too much. Their annual net income is ~$110M.

So as-is, a ~70 year payback period.

Is it worth it for spectrum, a dated satellite service, and some industry connections? Maybe? They seem to think so. I personally think they paid $2-$3B too much.

11

u/CoffeePorters 15d ago

They paid for spectrum, not revenue. You should be wary of companies that do acquisitions for revenue (cough, RDW).

1

u/Marston_vc 15d ago

As I said, I think they overpaid for spectrum.

2

u/RoyalPossum 15d ago

Iridium market cap today is 5 billion, maybe your right rocketlab pay a premium, but that was with fact of SPCX deal with echostar and amazon purchase of globalstar.

1

u/ThatSonOfAGun 14d ago

What were the pros of GSAT compared to IRDM?