Google share price: Company may lead $500 million funding round in Magic Leap

on Oct 14, 2014
Updated: Feb 27, 2024

Follow Invezz on Telegram, Twitter, and Google News for instant updates >, Tuesday, October 14: Google Inc (NASDAQ:GOOGL), the world’s largest Internet search company, may lead a big investment in US tech start-up Magic Leap, according to a Re/Code report.

The website yesterday cited unnamed sources, according to whom, the Mountain View-based tech giant and other companies were planning to invest about $500 million in the firm, which is developing technology to deliver “cinematic reality”. Re/Code said that venture capital firm Andreessen Horowitz might be one of the other investors in the consortium.

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In yesterday’s trading, Google shares closed 1.9 percent lower at $544.75.
**‘Cinematic reality’**
An investment in Magic Leap would further illustrate the growing interest in virtual reality (VR) from big technology companies. Earlier this year, Facebook Inc (NASDAQ:FB) agreed to acquire Oculus VR Inc, the developer of a virtual reality device called Oculus Rift (). Meanwhile, Japanese consumer electronics giant Sony Corp is working on its own VR handset, dubbed Project Morpheus, which will be compatible with the company’s new video game console, the Playstation 4.

If accurate, yesterday’s report means that Google also wants to tap into the virtual reality space. However, according to Magic Leap’s chief executive officer Rony Abovitz, the Florida-based firm isn’t engaged in virtual reality.
“Those are old terms — virtual reality, augmented reality. They have legacy behind them. They are associated with things that didn’t necessarily deliver on a promise or live up to expectations,” Abovitz said earlier this year in an interview with the South Florida Business Journal. “We have the term ‘cinematic reality’ because we are disassociated with those things.”

Abovitz has also said that his company is working on “what we believe will be the most natural and human-friendly wearable computing interface in the world”.
Aside from these bold claims, not much is known about the company’s technology and it’s unclear what “cinematic reality” actually is. Nevertheless, the company has already seen significant interest from investors; earlier this year it raised more than $50 million to develop its proprietary technology platform.

**Analysts on Google**
According to CNNMoney, the 42 analysts offering 12-month price forecasts for Google have a median target of $670.00, with a high estimate of $750.00 and a low estimate of $570.00. The current consensus among 47 polled investment analysts is to buy stock in the company, the website notes.
**As of yesterday’s US close buy Google shares at $544.75**
**As of yesterday’s US close sell Google shares at $544.75**


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