Rocket Lab's deal to buy Iridium Communications is a reminder that companies with existing satellite assets are hot property in the new space race. ViaSat might be the next takeover target.
ViaSat shares rose 24% to $76.69 on Monday after the Iridium deal was announced. That values the satellite company at a market valuation of $10.47 billion but some Wall Street analysts think it still could fetch a higher price.
ViaSat's assets include L-band spectrum -- electromagnetic frequency prized for its ability to carry signals over long distances and penetrate obstacles. Overall, ViaSat's 68 megahertz of global spectrum could be worth $15 billion, according to Raymond James analysts.
"We see the [Iridium] valuation as a strong read-through for ViaSat, particularly regarding its global L-Band spectrum" wrote Raymond James analyst Brent Penter in a research note. "With the other two global L-Band spectrum owners Globalstar and Iridium now both having announced deals to be acquired in the last few months, we view ViaSat not only as the only remaining stand-alone way to get global L-Band spectrum, but with a far larger portfolio."
Meanwhile, Oppenheimer analyst Timothy Horan initiated coverage of ViaSat with an Outperform rating and $140 price target on Monday, implying 82% upside from here. He argued its spectrum could be worth around $15 billion and the rest of its business around $10 billion.
Who are the potential buyers for ViaSat, or at least its spectrum? As Barron's has previously written, both Elon Musk's SpaceX and Amazon.com might both need more spectrum for their satellite plans.
SpaceX stated in its IPO filing that next-generation satellites could support a network equivalent to terrestrial carriers and it may pursue additional spectrum acquisitions. Amazon recently agreed to acquire Globalstar for nearly $12 billion, including licenses for around 25 megahertz of satellite spectrum. However, its spectrum portfolio remains smaller than SpaceX's.
One obstacle is that ViaSat has pledged to pool its spectrum in a joint venture with U.A.E.-based Space42. However, CEO Mark Dankberg has previously said the company would keep its options open and that it wouldn't necessarily need all of its spectrum for the Space42 joint venture.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
June 30, 2026 08:28 ET (12:28 GMT)
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