Google Inc Reportedly To Invest $1 Billion In SpaceX

Google is apparently ready to make one of its biggest investments to date. The company wants to team up with Elon Musk and SpaceX to expand the internet to underserved areas in the world. This would work by developing satellites that would beam low cost internet access to places that don’t currently have it.

Google Inc Reportedly To Invest $1 Billion In SpaceX

Google’s desire to expand internet access

The report explained, “The price and terms Google and SpaceX are discussing couldn’t be learned, although one person familiar with them said Google has agreed to value SpaceX north of $10 billion and that the size of the total round, which includes other investors, is very large.”

The Wall Street Journal added that the investment could reach $1 billion. It still is not clear how much of a stake Google will wind up with. One of Google’s main goals is to expand the internet to all. The search giant performed experiments with balloons and drones to bring the internet to people. Project Loon brought large helium balloons  equipped antennae that offer signals similar to 4G. These signals provide internet for homes and phones about 12 miles down below.

A major investment

This would be a huge investment for Google in terms of technical difficulties and finance. It would be a huge expense involving the installation of ground-based antennae and computer terminals to receive the satellite signals. Such an expense has previously pulled other companies attempting to build similar satellite networks into dire financial constraints. The technical difficulties of this project really pertain to beaming internet signals and information from space to earth. What’s more is that the company doesn’t have the rights to a radio spectrum.

The ultimate goal for Google is to expand its user base and ultimately increase revenue. BusinessWeek added, “By teaming up with SpaceX, Google would be seeking to gain an edge over rivals such as Facebook Inc., which is working on projects to deliver Internet service to under-served regions by building drones, satellites and lasers. WorldVu Satellites Ltd., backed by Qualcomm Inc., and Virgin Group, has begun a similar effort.”