Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Google Inc (GOOGL) Will Leapfrog Cable With Its Investment In SpaceX: Jon Steinberg

Some reports emerged that Google Inc (NASDAQ:GOOGL) is very close to investing $1 billion in Elon Musk’s SpaceX for internet via satellites. What does this investment mean for Google Inc (NASDAQ:GOOGL)? Daily Mail North America CEO, Jon Steinberg and Re/Code Managing Editor, Edmund Lee talked on CNBC about the significance of this investment and how Google Inc (NASDAQ:GOOGL) can benefit from it.

Google, is GOOGL a good stock to buy, Project Ara, modular smartphone, Josh Lowensohn, Nathan Ingraham

Steinberg feels that this move from Google Inc (NASDAQ:GOOGL) practically leapfrogs them over all the cable companies. He mentioned that Google Inc (NASDAQ:GOOGL) owns a fiber cable network and one might think that they can acquire some cable company to get into the business, but he feels that thinking 5-10 years down the line, getting into satellites would be the apt decision.

Steinberg thinks that relationship between Google Inc (NASDAQ:GOOGL) CEO, Larry Page and Tesla Motors Inc (NASDAQ:TSLA) CEO, Elon Musk might be another reason for this investment. Steinberg thinks that this is a big ambitious plan from Google Inc (NASDAQ:GOOGL) and he feels that it makes sense if they have an unlimited budget for it.

Google Inc (NASDAQ:GOOGL) through its GoogleX division is making hot air balloons and drones are trying to get internet to remote parts of the world. Amidst all these efforts why are they trying to buy into the satellite technology. Lee thinks that the GoogleX projects might expand Google Inc (NASDAQ:GOOGL) globally, but he feels that if the investment in SpaceX works, it might leapfrog cable companies in one stretch.

“The other thing to look at is, for the hot air balloon type ideas around delivering internet to people. Thesis has been it’s the way to deliver internet to areas that don’t have it, poor areas or parts of the world that don’t have hookups. But, if this works out really well, as Jon pointed out earlier, it could just leapfrog cable and it’s the way to kind of ensure that people get access to their content or their services, which is how they make all their money. Right now, cable is the gate keeper for all that,” Lee said.

Steinberg added that Google Inc (NASDAQ:GOOGL) has nowhere else to go as Elon Musk’s SpaceX is so far ahead in this technology. So he feels that Google Inc (NASDAQ:GOOGL)’s investment in SpaceX makes a lot of sense.

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!