Google investing $1 billion in Musk’s SpaceX

Google is leaving no opportunity behind to connect the world. In this process reports are circulating that its going to invest $1 billion in Elon Musk’s Space Exploration technology corporation. With this deal it values around $10 billon according to a close source to the company.

The investement is closely to make explore the ways to connect the world in a more effective way. More clearly the earlier reports were that they were used to spread online services to the undeserved parts of the online. It seems like California based Google is trying to compete with the tech gaint Facebook which is also on the same edge to connect the world. Recently it also acquired Qualcomm Inc. and Virgin Group making a tough competition to Google.

“Google needs to find additional sources of revenue,” said Greg Sterling, vice president of strategy and insights for Local Search Association, whose members operate in the location-based advertising market. “If they can expand into new markets, obviously they can expand their revenue and keep investors happy.”

“There are a couple of new investors that — because of their disclosure requirements, we’ll — will have to become publicly known, I think toward the end of this month,” Musk said in an interview.

The main aim of the SpaceX is to advance the spacecraft technology and finally create a city on Mars which is his ultimate mission.

“If Google is committing money to SpaceX, they are likely to be a major investor and a real partner,” said Marco Caceres, director of space studies at consultant Teal Group. “Google brings the applications for the satellites to the table, and SpaceX has the technical know-how and the launch capacity.”