Google has paid $1 billion (£784 million) for the former site of LinkedIn’s Mountain View headquarters in the largest Bay Area real estate purchase by far this year.
The tech giant confirmed that they bought the 12-building Technology Park, totalling 795,663 square feet, but declined to comment any further.
The site, most of which Google already rents, is only a few minutes west of the company’s Googleplex headquarters.
The purchase is the second largest property purchase in the United States this year, eclipsed only by the $2.4 billion (£1,882,080 bn) the company paid for Chelsea Market in Manhattan.
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The purchase of the site, highlighted red, is the second largest property purchase in the United States this year, eclipsed only by the $2.4 billion the company paid for Chelsea Market in Manhattan. The new building is only a few minutes west of Googleplex, located on the left
The internet company has now spent at least $2.8 billion (£2,195,088 bn) on properties in Mountain View, Sunnyvale and San Jose over the last two years.
Earlier this month, Google said it will also pay an additional $110 million (£86 mn) for a new 10 care campus to house employees, pending a resident vote in December.
Google’s parent Alphabet reported earnings of $33.7 billion (£26.43 mn) in the third quarter, up 21 per cent. It had $13 billion (£10 mn) in cash at the end of the quarter.
Despite the fact that the FAANG companies Facebook, Alphabet, Apple, Nasdaq and Google all lost a collective $172 billion (£134 bn) in value at the beginning of this month.
Google’s parent company Alphabet’s stock closed Monday at $1,020 a share, marking a 20% decline from its record high of $1,273.84 (£991) a share in late July.
Like Facebook, Google has also come under scrutiny over privacy issues that resulted in a fine of $5.07 billion (£3.94 bn) imposed by the European Union fine.
The tech giant confirmed that they bought the 12-building Technology Park, totalling 795,663 square feet, but declined to comment any further (stock image)
Chad Leiker, the vice president of Kidder Mathews, a commercial real estate firm said: ‘This is an opportunity for Google to own more office space very close to their headquarters. That office space is becoming very rare in Mountain View.’
‘This is in Google’s core campus area, and they would certainly want to own it and control it rather than continue to lease it,’ said Philip Mahoney, executive vice chairman with Newmark Knight Frank, a commercial real estate firm.
‘The property begs for redevelopment with higher densities,’ Mahoney said. ‘But that would be a much longer discussion and process’ in connection with Mountain View’s development plan for the areas north of U.S. 101.
Prior to Google’s deal, the highest price paid in Silicon Valley was a $284 million acquisition by developer Jay Paul of the Cityview Plaza office, retail and restaurant complex in downtown San Jose in July.
The purchase is the second largest property purchase in the United States this year, eclipsed only by the $2.4 billion (£1,882,080 bn) the company paid for Chelsea Market in Manhattan (file photo)
HOW MANY SUBSEA CABLES HAS GOOGLE INVESTED IN TO DATE?
So far, Google says it has directly invested in 11 subsea cables. This includes some that are currently under construction, and cables that have yet to be built, including three which the firm announced earlier in 2018.
The subsea cables include: Curie, a private cable connecting Chile to Los Angeles; Havfrue, a consortium cable connecting the United States to Denmark and Ireland; and Hong Kong-Guam Cable system, a consortium cable interconnecting major subsea communication hubs in Asia.
Cables stretching across the oceans carry more than 90 percent of the world’s traffic.
Back in 2016, Google announced it would be building an 8,000-mile undersea cable across the Pacific Ocean by 2018.
It has since adjusted this target to 2019. The PLCN will stretch from Los Angeles to Hong Kong.
It is an ultra high-capacity system, capable of 120-terabits-per-second. This is twice the capabilities of the Faster cable, which connects the US to Japan.
The team says it would be able to support 80 million simultaneous HD video conference calls between Asia and North America.
It has since announced that it plans to string a trans-Atlantic cable from France to Virginia that will be operational by 2020.
The web giant said in a statement that the 4,000-mile-long (6,400km) undersea cable will land stateside in Virginia Beach.
So far, Google says it has directly invested in 11 subsea cables. This includes some that are currently under construction, and cables that have yet to be built, including three which the firm just recently announced. Google’s Cloud Network is shown above