Rocket Lab Announces a Massive $8 Billion Satellite Acquisition. Now What?
The space-launch company is shelling out serious dough to pull this deal off, but it's arguably worth it.
Overview
While the market remains largely focused on newly IPO'd Space Exploration Technologies (NASDAQ: SPCX), known as SpaceX, and whether it will merge with Tesla or acquire T-Mobile, smaller rival Rocket Lab (NASDAQ: RKLB) just made a very big move. On Monday, it announced plans to acquire Iridium Communications (NASDAQ: IRDM) for $8 billion.
At first blush, it doesn't appear to mean much. Both minor players will remain minor players compared to SpaceX, even after the pairing is consummated. And perhaps that expectation is accurate.
Details
Nevertheless, this union has the potential to produce a sizable reward for patient Rocket Lab shareholders.
Source
Originally published at www.fool.com.