Google acquires Skybox for only USD$500m?

We are pleased to introduce the world's first high-resolution HD video of Earth taken from a commercial remote sensing satellite. This video showcases a selection of the first videos taken from SkySat-1, the first of our planned 24 satellite constellation. The video clips have not yet been calibrated or tuned. SkySat-1 captures up to 90-second video clips at 30 frames per second. The resolution is high enough to resolve objects that impact the global economy like shipping containers, while maintaining a level of clarity that does not determine human activity. SkySat-1 also captures some of the highest quality color imagery of any commercial satellite and is capable of sub-meter native color and near-infrared imagery. The most revolutionary fact is that SkySat-1 was built and launched for more than an order of magnitude lower cost than traditional sub-meter imaging satellites. SkySat-1 was launched on November 21, 2013 aboard a Dnepr rocket into a 600 kilometer sun-synchronous orbit. Discover more on our website at: skybox.com. Music: Jonny Higgins, Boom Rising Intro to Full Band (iStockPhoto)

Skynet is coming

Ok, now that the Google / Skynet joke is out of the way, how about Googles most recent acquisition of Skybox Imaging?

Skybox Imaging is a satellite company that is able to cram the latest digital imaging technology into a (relatively) small cube sized package (satellite) that pales in size and weight comparison to your standard earth orbiting satellite. 

This is exciting, as the cost-per-pound of getting anything into a near-earth orbit is still at a staggering USD$10,000; more than most companies can even contemplate. Skybox's micro-satelitte technology will in effect, open up the skies and be an important step forwards in space technology.

With this acquisition, Google has acquired a significant component to add to its very popular and powerful Google Maps service. They are now able to maintain and update the accuracy and relevance of their current public mapping service, and also provide their stealth, under the radar enterprise mapping services with significantly more applications. Everyone from the farming industry, to logistics, all the way to hedge fund managers are sure to find utility in real-time satellite imaging. 

Farmers can track weather and crop growth, logistics can track their fleets at any given moment and hedge fund managers, well, they can acquire real-time data that will give them the edge to move their billions of dollars around on the stock markets.

The current vision of Skybox is to build a constellation of 24 satellites which in effect, will be able to cover the entire expanse of the Earth. 

Instagram $1 billion, Whatsapp $19 billion 

This has got me thinking though. With all the patents, expertise, knowledge, tangible assets and practical applications that Skybox possesses, they were still only acquired for a small $500 million.

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