Google In Talks To Take Stake In Virgin Galactic
After news broke out Wednesday that Google would be acquiring satellite company Skybox Imaging, this move toward Virgin Galactic now puts the spotlight on what the internet search company has planned for the stars.
This deal with Virgin Galactic could help accelerate Google's plan to extend internet service through the use of balloons, drones and satellites to billions of people around the world who aren't already connected.
Talks between the two firms have been taking place for months, and are set to be at an advanced stage. According to insiders, there are possibly two main elements to this deal. The first element will have Google injecting hundreds of millions of dollars into a joint venture with Virgin Galactic. The second part would involve Google spending $30 million for a small stake of Virgin Galactic holding company.
A person close to Google told Sky News, the $30 million investment could value Virgin Galactic at $2 billion, equating to a 1.5 percent equity stake.If this deal with Google comes to a close, it would mark an achievement for Virgin Galactic with the firm's equity value more than doubling since 2009.
Sky News reported that Google and Virgin Galactic both declined to comment.
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