Rocket Lab’s proposed $8 billion acquisition of Iridium Communications is facing regulatory scrutiny after Ligado Networks urged the Federal Communications Commission (FCC) to review the deal. Ligado, a partner of AST SpaceMobile, alleges that Iridium has used regulatory filings to obstruct and delay competitors, potentially suppressing competition in the mobile satellite services market.
Ligado’s challenge points to earlier allegations by SpaceX that Iridium filed numerous petitions to impede rivals. The challenge adds uncertainty to the acquisition, which is targeted to close in mid-2027.
Rocket Lab shares fell more than 25% last week. The decline was compounded by a separate announcement that the debut of the company’s Neutron rocket has been delayed to 2027.