Hank Green did a video recently advocating for an "orbit value tax" -- like a Georgist Land Value Tax, but for orbits. This tax would, among other things, help fund orbital cleanup and internalize the externality of polluting orbital shells. It's an idea that deserves more discourse IMO.

Here is the video: https://www.youtube.com/watch?v=VLjW6zuYmos

There is a legitimate concern with space junk hitting useful stuff or even manned spacecraft but I think space is big and the sky won't appear bright soon. Not all satellites are that reflective and they need to reflect the sun, they don't just glow visibly.

What does Tesla have to do with Starlink or launch services?

It was always an American company. In order to launch rockets from countries in the US sphere of influence (even from NZ), companies must obtain an FAA license.

Rocket technology itself is so intensely regulated by US export control laws that it’s practically impossible to develop an orbital launch vehicle without being a US- or Europe-registered company.

It is a real shame. It also looks like a lot of engineering work is shifting away from NZ — Auckland seems to be focusing more on operations and space systems, and the launch stuff is moving to the US with Neutron.

https://en.wikipedia.org/wiki/Rocket_Lab#United_States_move_...

SpaceX previously said that are not allowed to hire foreign nationals generally.

So guess NASA told Rocket that if they want American contracts, they need to move?

https://qz.com/794101/elon-musk-explains-why-he-doesnt-hire-...

Needs access to American capital markets, contracts, governance structures, and jurisdiction (applicable law).

Capital probably, market access. It is pretty hard to raise capital for high risk ventures like that everywhere in the world other than the US.

You realize they have a new network of satellites, right? It works much better than the old version with the 90s tech.

A lot of remote IOT devices use Iridium, as well as the US government or DoD.

Sailors may be a small and dwindling community, but this is our core use case. When you are sailing offshore you need to download weather predictions so that you can chart your course to catch favorable winds. My experience with Iridium is that you open a targeted set of ports for the modem to feed your phone via, and then you don't have to think about it again. 100+ nautical miles offshore and it just works.

It’s not about Iridium. It’s about Iridium’s customers and partnerships. RocketLab hopes to launch their own satellites presumably and then can sell significantly improved services to them, without having to build a customer base from scratch.

Starlink Direct to Cell (VoLTE) service now leverages global cellphone client infrastructure. It would be extremely foolish to compete with something proprietary. =3

Uncertain what Iridium global RF band allocation holdings were worth.

If it is still pole-to-pole global monolithic coverage, than hardware/legacy-protocols are of secondary interest. Modern SDR transceivers with proper RF beam-steering front-ends could retrofit the business while slowly phasing out legacy hardware.

But I do agree, Iridium was too pricey for most consumer product markets, and there were several other satellite broadband services.

Additionally, Starlink Direct to Cell (VoLTE) service now leverages global cellphone client infrastructure. It would be extremely foolish to compete with something proprietary. =3

> Rocket Lab has secured commitments for a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo to fund the cash portion of the acquisition.

Given the timing, this seems like a risky move as they'll be issuing debt in mid-2027 to refinance the bridge, at a time the market could be saturated / corrected.

https://www.reuters.com/business/media-telecom/rocket-lab-bu...

And access to a customer base. A lot easier to sell them new services if they already have a big contract with you

Iridum gains 23 launches per year with 100% success rate in the past 12 months, a satellite manufacturing pipeline with 6 satellites produced and launched, and a cost-to-orbit of $25K/kg operational (with an in-development design targetting $4K/kg).

They are late compared to SpaceX, to be sure: 150 launches per year, 2400 satellites manufactured per year, $3K/kg operational with F9, target $200/kg in development with Starship.

A profitable satellite company with a lot of debt and satellites that target the previous model of bespoke terminals when the market is moving to satellite service on regular phones.

The spectrum is the big thing. If they wanted a revenue stream they could just buy bonds.

RocketLab market cap is 57b.

Iridium market cap was 5.5b and this transaction values it at 8b.

Look at GameStop’s quixotic attempt to acquire eBay. Which is actually not impossible.

Dell bought EMC for 67b when they were worth 24b

Rocket Lab's market cap is 57B and are buying Iridium for 8B. I'm assuming you're implying some other measure of worth, but it's not that crazy based on stock price.

This is one of those times you actually get to use "leverage" as a verb without sounding turbo cringe: a leveraged buyout is an acquisition with borrowed money; the hope is that you will be able to pay back the debt with the money you make off the acquired assets. Doesn't always pan out but sometimes it does.

That's this thing called credit.

People do this all the time, that's how they buy their first house (or at least used to...). Your net worth is basically zero beyond what you saved for the down payment, but the bank advances you the money to buy the house because it believes your future income streams will allow you to pay the principal plus an interest.