Google share price: Company buys Skybox Imaging for $500 million

on Jun 11, 2014
Updated: Jun 1, 2022
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iNVEZZ.com, Wednesday, June 11: Google Inc (NASDAQ:GOOGL), the world’s largest Internet search company, is acquiring a satellite firm in a move to bolster its mapping service.

The tech giant yesterday announced that it had agreed to acquire Skybox Imaging Inc for $500 million in cash, adding that the price is “subject to adjustments”. Skybox, founded in 2009, has designed small, relatively cheap satellites that can collect daily photos and video of the Earth.
In yesterday’s trading, Google shares closed 0.4 percent lower at $568.30

**‘Up-to-date imagery’**
“Skybox’s satellites will help keep Google Maps accurate with up-to-date imagery,” Google said yesterday in a statement.
Skybox’s technology could prove to be a major boon for Google Maps, as it would enable more regular updates to Google’s mapping service. Google Maps currently uses images from around 1,000 sources including commercially available satellite images. Most of these images are updated every few months or years. Skybox’s technology could provide high-resolution images every day, and comes with software capable of analysing the information contained in those images. In addition, the satellites developed by Skybox weigh roughly 260 pounds, making them much cheaper to build and launch than traditional satellites that can weigh tons.

**Internet accessibility**
While Skybox’s team is initially set to work with Google’s mapping business, the Internet giant hopes that it could also prove useful in other areas.

“Over time, we also hope that Skybox’s team and technology will be able to help improve Internet access and disaster relief — areas Google has long been interested in.”

Google has recently made a number of moves as part of its push to increase Internet connectivity. It is looking at using high-flying aircraft to provide broadband to remote places and is working on a project to beam Internet from the sky with the help of weather balloons. It also recently bought Titan Aerospace, a maker of solar-powered drones. Speculation emerged earlier this month that the company plans to spend more than $1 billion on a fleet of satellites as part of this drive

(Google share price: Company to invest over $1 billion in satellites – WSJ).
Google is embarking on these initiatives, as connecting more people to the Internet could be hugely beneficial to its business, which relies heavily on advertising.
**Analysts on Google**
The 40 analysts offering 12 month price targets for Google for The Financial Times have a median target of $662.50, with a high estimate of $750.00 and a low estimate of $525.00.
**As of yesterday’s US close buy Google shares at $568.30**
**As of yesterday’s US close sell Google shares at $568.30**

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