Google bought a satellite imaging company known as Terra Bella for $500 million at nearly two years ago, but has now announced plans to sell off the company to a news start-up, Planet Labs, for lesser the amount it was bought, Business Insider reports.
Both Google and Planet Labs have not released the financial terms of the deal, but inside sources revealed that Planet Labs paid a little over $300 million for the satellite imaging company. While Planet Labs will have total control over Terra Bella, Google will continue to be a major shareholder while still investing one way or the other towards the company’s success.
Google’s decision to sell Terra Bella underlines the Alphabet-owned internet company’s recent resolve to control its spending portfolio while also acquiring other companies wisely. Google had often been on a spending spree in recent years and buying up companies left and right, but it is now controlling its spending and seeking better investments from its acquisitions.
Google’s several top executives lost over the last couple of years and just last year, it revoked its plans to provide internet service via drones powered by solar technology just as Facebook is planning to undertake. This move effectively ended Google Fiber internet service.
In its reported earnings for last month, Google started that it lost major revenues from its investments in the last quarter and is seeking alternative ways to boost its earnings again in coming quarters.
Meanwhile, Tech Crunch reported that Planet Labs announced its plans to launch 88 more lower-cost satellites on February 14, a move that is believed to be the only time such massive numbers of small satellites are ever launched at the same time. Planet Labs owns 60 units of medium resolution satellites, including SkySat Earth imaging satellites among others.
Climate Corporation had initially set out to buy Terra Bella but Planet Labs eventually won the deal.