Roger Fingas
Google parent Alphabet is reportedly in talks to sell its satellite imaging unit, Terra Bella, in a deal that could impact the future of Google Maps and competition with Apple's own Maps app.
The unit would be sold to a startup, Planet Labs, that is actually seeking new venture funding to help pay for the acquisition, sources told the Wall Street Journal. Indeed the alleged deal would involve handing Alphabet a mix of cash and equity.
Terra Bella was previously known as Skybox Imaging, and bought by Google in 2014 for $500 million. In its current incarnation, the unit has seven satellites for capturing data, which is then used in Google Maps and/or sold to third parties.
Google is said to have decided, however, that it's more cost-effective to buy imagery from outside parties, rather than launch and operate its own satellites.
For Planet, an acquisition could make it more competitive, as former workers say it has been struggling to find customers. While it operates dozens of satellites, each weighs about 10 pounds and can only snap low-resolution images. Terra Bella's satellites are far larger, with higher-quality capture.
Under CFO Ruth Porat, Alphabet has been cutting back on some of Google's more ambitious and/or expensive efforts — for instance halting Google Fiber expansion plans, at least until wireless options make them more affordable.
Apple has so far been heavily dependent on third-party mapping data, though it has been touring its own vehicles around cities worldwide. If Alphabet does sell off Terra Bella, it could potentially put Apple and Google on a more level playing field.
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15 Comments
Will this make it easier for governments around the world to affect censorship of satellite imagery?
Has Google been using Skybox imagery for Google Maps? Perhaps but they've certainly been using other sources too if they have. As for selling Skybox to Planet labs they'll gain ownership in that company with the sale according to reports so if they need the resources I'm sure they can have them. The good thing is Apple could buy from Planet Labs too if it's advantageous. That's a good thing for mobile users in general.
Apple's problem with Maps continues to be POI data, not any lack of high res satellite imagery.
The really big underlying story is how Google (Alphabet) is slowly, but steadily, selling off a lot of their extraneous stuff, in the process starting to become a more focused company. It's because of their CFO, Ruth Porat.