Spy Satellite Companies Form Space Monopoly | WIRED
Summary
On Monday, Colorado-based satellite firm DigitalGlobe announced its merging with Virginia-based competitor GeoEye in a stock and cash deal worth $900 million. Meanwhile, the companies are dependent on funding from Congress and the Pentagons National Geospatial-Intelligence Agency (NGA) in order to stay afloat. Although the total amount the government spends on reconnaissance satellites is kept secret, analysts expected losses up to 50 percent. A week before the budget dropped in February, GeoEye launched a failed hostile takeover bid for DigitalGlobe, offering to acquire the company for $792 million. The NGA diced into two parts GeoEyes share of the agencys 10-year, $7.3 billion EnhancedView program, which provides funds for imagery and helps develop satellite technology.