Rocket Lab Sold $1.9 Billion of New Stock to Pay for Iridium. Here's the Dilution Math.

Rocket Lab completed a $1.94 billion stock sale (29.3 million shares at ~$66 each) to fund its acquisition of Iridium Communications, canceling a $3.6 billion bridge loan. While this results in approximately 5% shareholder dilution, the author argues it was the prudent choice for an unprofitable company to avoid heavy debt obligations. The deal could ultimately add up to 72 million shares (12% dilution) when including stock consideration for Iridium shareholders, with closing expected in mid-2027.