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Google buys satellite start-up for $500m

Google is spending half a billion dollars on a start-up that makes and launches satellites, in order to improve the accuracy of its mapping service and eventually expand internet access around the world.

The acquisition of Skybox will give Google access to a huge new trove of data to add to its extensive mass of personal information. The deal is the latest of many recent moves by Silicon Valley to look towards the heavens for expansion.

Skybox is one of several start-ups, including San Francisco’s Planet Labs, taking advantage of falling costs in building and launching satellites to bring new innovations to remote-earth imaging and monitoring. Traditional rivals’ satellites, such as Digital Globe, cost hundreds of millions of dollars, but Skybox’s cost less than $9m each, albeit having a shorter lifespan.

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