Shares of Google were gaining 0.7% to $534.32.
Facebook (FB) was reportedly looking to acquire the startup before Google's acquisition.
According to The Wall Street Journal, Google will use Titan Aerospace's drones, the Solara 50 and Solara 60, as part of its Project Loon which aims to bring Internet connectivity to less-accessible areas through the use of hot-air balloons. The company may also use the drones in conjunction with its Makani unit which is currently developing airborne wind turbines.
Titan's drones may also be able to help Google Maps with their ability to take high-resolution of the earth.
"It's still early days, but atmospheric satellites could help bring internet access to millions of people, and help solve other problems, including disaster relief and environmental damage like deforestation," a Google spokesperson said in a statement to The Journal.
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TheStreet Ratings team rates GOOGLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOOGLE INC (GOOGL) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."