To further Google’s cause in making it possible for everyone to connect to the internet, a deal whereby $1 billion in Space Exploration Technologies Corporation is getting close to being finalized. With Elon Musk’s Space X, finding new and innovative ways to make internet connectivity possible are being researched.
Space Exploration is currently valued at minimum $10 billion and according to an insider the deal with Google is private. Google’s investment would be a strategic move for SpaceX, which strives to spread online services to parts of the world where connectivity is not available.
Google has a goal of building a stronger user base and selling more digital advertising, using the spread of internet access around the globe. If the deal goes through, Google would gain a significant and important edge over competitors like Facebook, which has been working on a variety of projects for the same purpose by building lasers, drones, and satellites. A similar effort is underway by WorldVu Satelittes, which has backing from both Virgin Group and Qualcomm, Inc.
In a statement from Greg Sterling, vice president of strategy and insights with Local Search Association, at this time, Google needs to find more revenue sources. If the company can reach new markets, revenue would grow, thereby satisfying investors. When asked for a comment, both Google and SpaceX declined.
However, on January 12 Musk said in an interview that there is a need for smaller and more sophisticated satellites to be launched with greater frequency. He added that at minimum, SpaceX would spend about $1, possibly $2 for activities associated with satellites.
Project Loon has already been revealed by Google, which consists of a network of balloons capable of making the Web available to people who live in places in the world considered “hard to reach”. In addition, there was last year’s acquisition of Skybox Imaging, Inc., a satellite startup company that may at some point assist in making internet access better.
Over the years, Musk has built a strong reputation for being a successful entrepreneur and innovator. As the cofounder of PayPal, a digital payment system, and leader of Tesla Motors, Inc., Musk has what it takes to make the deal with SpaceX a huge success. In fact, there are a number of new investors already showing interest in the project. However, because of nondisclosure agreements, no names can be mentioned.
The ultimate goal with SpaceX is to advance technology specific to spacecraft and rockets. There is also anticipation that sometime in the future, technology will be established on Mars. With the timeframe for a Mars settlement being so long, no initial public offering is planned.
Marco Caceres, director of space studies with the Teal Group said that if Google is really committed to backing SpaceX with money, they will become a real partner and serious investor. Google has the ability to bring satellite applications to the table while SpaceX possesses the required technical know-how coupled with launch capacity.