Google Inc. (NASDAQ:GOOGL)‘s ambition, to deliver reliable internet access to remote areas of the world, has seen it make an investment in SpaceX, run by CEO Elon Musk. CNBC’s, Dominique Chu, reports that the giant search engine company joins the likes of Fidelity and Capricorn in supporting SpaceX in the manufacture of satellites.
“We now know that SpaceX has raised a billion dollar in financing with two investors, Google, and Fidelity. […] Now SpaceX is saying they are joining existing investors Founders Fund Draper Fisher Jurvetson, Valor Equity Partners, and Capricorn. Google and Fidelity are to own just under 10% of the company,” said Mr. Chu.
The round of investment that SpaceX has collected from Fidelity and Google Inc. (NASDAQ:GOOGL) is to be used to support innovation ideas in areas of satellite manufacturing, as well as space transport. The investment essentially values SpaceX at $10 billion as the company’s popularity continues to pick up in the tech industry.
It awaits to be seen if Google Inc. (NASDAQ:GOOGL) will increase its stakes as SpaceX continues to command strong growth prospects in the Space industry. The search engine’s investment highlights its desire to use futuristic technology in spreading internet access to some remote areas of the world. The company currently relies on high altitude balloons, as well as solar-powered drones for the same
Google is looking to deliver reliable internet access across the globe as one of the ways of attracting more people into using its services. The Wall Street Journal reports that Google Inc. (NASDAQ:GOOGL) has been pursuing satellite-based Internet service for quite some time having already hired industry veteran, Greg Wyler, to spearhead its efforts in the space.
Tesla Motors Inc. (NASDAQ:TSLA) CEO Musk has already stated that SpaceX is looking to launch hundreds of satellites into relatively low orbit; to be used in delivering internet connection. It seems that these sentiments are the ones that triggered Google Inc. (NASDAQ:GOOGL) into making an investment.
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