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Innovation Through Acquisition

Google’s acquisition of Skybox is a good example of complementary innovation.

Google has just acquired satellite firm Skybox, and got plenty of attention for the acquisition. Two things stood out. The first was the low price (well, $500 million), reasonable for a firm with the capabilities of Skybox. The second was the potential for new services combining the satellite imagery with other technologies and services. Skybox has six satellites in space and is launching 18 more, giving it the majority of satellites in the world that can take very high resolution images and sell them commercially, as opposed to delivering them to the government that owns them, like spy satellites do. This advantage is likely to continue for a while because its satellites are currently the cheapest high-resolution satellites in the business.

via Innovation Through Acquisition | INSEAD Knowledge.

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