Posted: Sat, May 5, 2012, 12:53 PM ET (1653 GMT)
Commercial remote sensing company GeoEye announced Friday a proposal to acquire its principal domestic rival in space-based imaging, DigitalGlobe, for nearly $800 million. GeoEye announced it was offering $17 per share in cash and stock for DigitalGlobe, which would value the company at $792 million. DigitalGlobe confirmed it received the offer and was evaluating it. Both companies operate satellites that provide high-resolution images for government and commercial customers, but are facing a potential shortfall in sales as the US government has proposed cutting back on imagery purchases under the EnhancedView contracts with both companies.

Related Links:

•  Washington Post article
•  Space News article
•  DenverPost article
•  GeoEye press release
•  DigitalGlobe press release