Google and Virgin Galactic Negotiate Stake in Satellite Technology

Technology giant Google is in talks with Sir Richard Branson's Virgin Galactic to strike a deal that will give the search engine access to the former's satellite-launch technology, as well as handing over an equity stake in its space travel endeavour, according to Sky News.

The talks with Branson's £1.2bn (€1.5bn, $2bn) company are part of Google's strategy to put hundreds of satellites into orbit as it hopes to make the internet more accessible across the globe.

Negotiations are at an advanced stage as the two firms have been discussing the venture for several months, according to Sky.

There are apparently two parts to any potential deal. The first would see Google pump millions of pounds into a joint project which will see Virgin Galactic fold its technology that it has in the pipeline.

The second part will see Google spend roughly £17.8m for a stake in Virgin Galactic's holding company, which would equate to roughly 1.5% of the business.

Sky goes on to say that no deal is yet set in stone and that the terms and conditions could change before any deal is announced.

Although Virgin has been adamant that the service will begin this year, some quarters have suggested that problems with its development will dampen its practicality.

However, a deal with one of the technology sectors' leading pioneers, as well as one of the most commercially viable companies in the world, could prove to be the confidence booster that Virgin Galactic may need.

Google is currently embroiled in a race against its internet rivals to be the first one to offer worldwide internet access.