Is Google Inc (GOOGL) Funding SpaceX $10 Billion Satellite Internet?
Google Inc (NASDAQ:GOOGL) could be one of the major investors in SpaceX’s $10 billion satellite Internet project. SpaceX founder, Elon Musk, who is also the CEO of Tesla Motors Inc (NASDAQ:TSLA), recently updated on his plans for SpaceX. Musk said he intended to expand the Internet access to the pockets of the world that are not already connected through satellites. The project appears to be similar to Google’s Project Loon, which also seeks to expand the Internet access through balloons floating in the air.
$1 billion investment
It is reported that Google Inc (NASDAQ:GOOGL) has valued SpaceX above $10 billion and has agreed to invest some money in the company. It is estimated that Google intends to invest $1 billion in SpaceX, which will give it ownership of a tenth of the Internet project. Other investors expected to chip in and support Musk’s satellite Internet idea.
For Google, investment in the expansion of the Internet is something that almost comes naturally. The company draws most of its revenue dollars from the Internet Search. Analysts have noted in the recent times that the company needed to do more to keep its core business growing or make it stable. In making the Internet more reliable, cheaper, faster and widely accessible, Google hopes to increase its Search revenue as more people use its Internet Search Engine.
Google Inc (NASDAQ:GOOGL) already has an Internet initiative of its own known as Project Loon, which is especially targeted at connecting the developing world to cheaper and reliable Internet services. By investing in SpaceX, Google is hoping that the success of the project will further boost its Search business.
Low-flying internet satellites
Unlike the usual satellite, Tesla Motors Inc (NASDAQ:TSLA)’s Musk plans to float micro-satellites that float at an altitude of about 750 miles, below the typical altitude of 22,000 miles. Musk detailed that he intended to build the Internet satellite within five years, and the project would cost about $10 billion. He also dreams of someday taking the Internet to Mars.
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