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Alphabet Inc (GOOGL) Considers Selling Satellite Business to Planet Labs

Google bought this business three years ago for $500 million

   

Alphabet Inc (NASDAQ:GOOG,NASDAQ:GOOGL) is considering selling its satellite business to Planet Labs.

Alphabet IncThe project is called Terra Bella and Alphabet first acquired it three years ago for $500 million, but it looks like the company is ready to rid itself of it. The satellite business was designed by the company to help in aiding areas in need such as disaster regions.

Terra Bella has also helped to expand the less-fortunate areas around the world that have no access to the Internet as it offers free connection. It has also helped to improve Google Maps, which is as accurate as ever, offering images of roads, paths and the terrain of most countries around the world.

If a sale goes through, the proceeds will help to fund some of Google’s new projects which could become core assets in years to come. These include advancement in the drones business, as well as a commitment towards advancing autonomous driving technology and robotics.

The self-driving vehicle technology has quickly become a key part of Alphabet’s future as the company has spun off this part of its business into a stand-alone segment called Waymo. One of the vehicles developed by the company is being featured at the ongoing Detroit Auto Show 2017, which features the hottest vehicles of the year ahead of their release.

GOOG shares fell 0.1% Tuesday, while GOOGL stock declined 0.1%.

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