MDA Space (MDA) shed ~20% on rumours that SpaceX was sniffing around Globalstar’s sales process, less than two months after it bought EchoStar’s spectrum licenses…

… knocking ~$2B out of the backlog. Given MDA signed a $1.1B deal with Globalstar earlier in the year, more of the order book is at risk. Recall that MDA manufactures satellites for network operators…

… while SpaceX is vertically integrated, manufacturing and operating its own satellite network.

The latter model presents the opportunity to roll up smaller network operators, eroding the size of MDA’s end market and driving multiple compression.