Planet Labs NYSE:PL shares jumped as much as 12% on Monday, potentially driven by a major acquisition elsewhere in the space sector rather than company-specific news.
The catalyst appears to be Rocket Lab's (RKLB) announcement that it will acquire Iridium Communications (IRDM) in an $8 billion cash-and-stock transaction. Rocket Lab shares rose about 10%, while Iridium surged more than 20% following the news.
The acquisition gives Rocket Lab control of Iridium's global satellite communications network, wireless spectrum licenses and government customer relationships. The deal accelerates Rocket Lab's transformation from a launch provider into a vertically integrated space company, similar to the model pioneered by SpaceX (SPCX).
Although Planet Labs was not involved in the transaction, investors may be extrapolating a broader message from the deal: space assets are becoming increasingly valuable strategic infrastructure. For Planet Labs investors, the acquisition raises questions about what a unique Earth-observation constellation might be worth to a larger aerospace, defense or data company.