Google to Buy Satellite-Imaging Company Skybox Imaging for $500 Million

Google agreed to buy satellite startup Skybox Imaging Inc. for $500 million in cash, its latest of several moves into space as it searches for new sources of information and ways to deliver that data to more people.

Skybox has designed and launched small satellites that can collect daily photos and video of the Earth. Founded in 2009, Skybox has raised $94 million from investors that include Khosla Ventures, Bessemer Venture Partners and Norwest Venture Partners, according to Dow Jones VentureSource. Its founders wrote their first business plan as part of a Stanford graduate entrepreneurship course, according the company's website.

Google said it is buying Skybox mainly for its image capabilities, at least initially. However, the company is also trying to cover the globe with fast Internet access from the sky, using balloons, drones and satellites. The goal is to get everyone in the world online, which would likely increase the number of Google searches and boost the company's advertising revenue, while also boosting usage of Google's other services, such as Gmail and Maps.

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