Attachment Skybox Exhibits

This document pretains to SES-T/C-20151019-00746 for Transfer of Control on a Satellite Earth Station filing.

IBFS_SESTC2015101900746_1109188

                                                          FCC Form 312/Schedule A - Transfer
                                           Licensee/Transferor: Skybox Imaging, Inc./Google Inc.
                                                                      Transferee: Alphabet Inc.



I.      DESCRIPTION OF THE TRANSACTION, PUBLIC INTEREST STATEMENT,
        RESPONSE TO QUESTIONS 43 AND A21

        The instant Form 312 application (“Application”) seeks Commission consent for license-
related changes arising from the completion of one step in an ongoing corporate reorganization
(“Corporate Reorganization”), specifically, the creation of a new parent company for Skybox
Imaging, Inc. (“Skybox”). In addition, Skybox respectfully requests a waiver of Section 25.119
of the Commission’s rules to the extent the rule section requires submittal of a Form 312
application seeking transfer of control prior to the completion of a pro forma transaction that
involves satellite space and earth station licenses.

       On August 10, 2015, Skybox’s parent company, Google Inc. (“Google”) announced plans
to reorganize its business units and create a new public holding company, Alphabet Inc.
(“Alphabet”). The first step in the Corporate Reorganization was implementing a holding
company reorganization under Section 251(g) of the General Corporation Law of the State of
Delaware (the “Alphabet Merger”).1

        On October 2, 2015, Google implemented the Alphabet Merger pursuant to the
Agreement and Plan of Merger (the “Merger Agreement”), dated as of October 2, 2015, among
Google, Alphabet and Maple Technologies Inc., a Delaware corporation (“Merger Sub”), which
resulted in Alphabet owning all of the outstanding capital stock of Google. Pursuant to the
Alphabet Merger, Merger Sub, a direct, wholly-owned subsidiary of Alphabet and an indirect,
wholly-owned subsidiary of Google, merged with and into Google, with Google surviving as a
direct, wholly-owned subsidiary of Alphabet. Each share of each class of Google stock issued
and outstanding immediately prior to the Alphabet Merger automatically converted into an
equivalent corresponding share of Alphabet stock, having the same designations, rights, powers
and preferences and the qualifications, limitations and restrictions as the corresponding share of
Google stock being converted. Accordingly, upon consummation of the Alphabet Merger,
Google’s stockholders immediately prior to the consummation of the Alphabet Merger became
stockholders of Alphabet. The directors of Alphabet were the same individuals who were the
directors of Google immediately prior to the Alphabet Merger. Alphabet became the “successor
issuer” to Google for SEC purposes. Accordingly, shares of Alphabet Class C Capital Stock and
shares of Alphabet Class A Common Stock continue to trade on the NASDAQ Global Select




1
        This provision of Delaware law allows Delaware corporations to form the holding company
without the vote of the stockholders and provides for certain requirements around shareholder rights and
other aspects of the transaction, to prevent abuse.


Market (“NASDAQ”) on an uninterrupted basis under the symbol “GOOG” and “GOOGL”
respectively.2

        Following the Alphabet Merger and as part of the ongoing Corporate Reorganization,
Google will over time reorganize certain Google operations into subsidiary businesses that may
be transferred out of Google. Currently, all of these businesses are still under Google.

        The following diagrams show Skybox’s pre- and post-transaction structure.

Figure 1.0 - Pre-Transaction Structure




Figure 2.0 - Post-Transaction Structure




2
        Additional information about the Alphabet Merger is available on Google Inc.’s current report to
the Securities and Exchange Commission in Form 8-K, dated October 2, 2015, available at:
http://www.sec.gov/Archives/edgar/data/1288776/000119312515336550/d56649d8k.htm.

                                                   2


        Skybox holds three (3) licenses that will be transferred as part of the instant pro forma
transaction:

Satellite Space Station Licenses

Call Sign
S2862

Satellite Earth Stations Licenses

Call Sign
E120025
E130037

       The Alphabet Merger was a pro forma transfer of control and it serves the public interest.
As previously explained, the Alphabet Merger only creates a new holding company structure and
does not involve an assignment of any license. Shareholder control of Skybox is unaffected, as
are Skybox services. Under the Alphabet holding structure, Google will be able to operate in a
more efficient, economical, and transparent manner, allowing the company to concentrate on its
revenue generating activities, to expand its addressable customer base and to continue offering
technologically advanced services. For these reasons, Skybox respectfully submits that the
Corporate Reorganization is in the public interest.

II.    RESPONSE TO QUESTIONS 40 AND A20 (OWNERSHIP)

        As described above, the ultimate ownership and control of SkyBox will not change a
result of the instant pro forma transaction.

      After giving effect to the Corporate Reorganization, the ownership structure of Skybox
Imaging, Inc. will be as follows:

Skybox Imaging, Inc. is wholly-owned by Google Inc.

Name:                 Google Inc.
Address:              1600 Amphitheatre Parkway
                      Mountain View, CA 94043
Ownership:            100%
Citizenship:          United States (Delaware)
Principal Business:   Technology search services and advertising

In turn, Google Inc. is wholly-owned by Alphabet Inc.:

Name:                 Alphabet Inc.
Address:              1600 Amphitheatre Parkway
                      Mountain View, CA 94043
Ownership:            100%
Citizenship:          United States (Delaware)

                                               3


Principal Business:    Holding company

As of October 2, 2015, the following persons have a 10% or greater voting or equity interest in
Alphabet Inc.:

Name:                  Larry Page
Address:               1600 Amphitheatre Parkway
                       Mountain View, CA 94043
Ownership:             42.4% of Class B common stock (representing 27.4% voting power)
Citizenship:           United States
Principal Business:    CEO and Director, Alphabet Inc.

Name:                  Sergey Brin
Address:               1600 Amphitheatre Parkway
                       Mountain View, CA 94043
Ownership:             41.7% of Class B common stock (representing 27.4% voting power)
Citizenship:           United States
Principal Business:    President and Director, Alphabet Inc.

No other person or entity has 10% or greater direct or indirect voting or equity interest in Google
North America.

Executive Officers and Members of the Board of Skybox Imaging, Inc.:

                       Director: Kenneth Yi
                       CEO/President/Secretary: Kenneth Yi
                       Assistant Secretary: Christine Flores

Address for all Officers/Directors:

                       1600 Amphitheatre Parkway
                       Mountain View, CA 94043

III.   REQUEST FOR WAIVER

        To the extent necessary, and pursuant to Section 1.3 of the Commission’s rules, a waiver
is requested with respect to the requirement specified in 47 CFR 25.119(a) that satellite space
and ground station licensees “must file an application for Commission authorization before you
can transfer, assign, dispose of…, your station license."3

       Section 1.3 of the Commission’s rules states that a waiver will be granted if “good cause”
is shown.4 The Commission may exercise its discretion to waive a rule where the particular facts



3
       47 CFR §25..
4
       47 CFR § 1.3.

                                                 4


make strict compliance inconsistent with the public interest.5 In addition, the Commission may
take into account considerations of hardship, equity, or more effective implementation of overall
policy on an individual basis.6 Waiver of the Commission's rules, however, is appropriate only if
both (i) special circumstances warrant a deviation from the general rule, and (ii) such deviation
will serve the public interest.7

       Skybox respectfully submits that the Alphabet Merger satisfies both prerequisites of the
required waiver showing.

        The Alphabet Merger involves special circumstances. The Alphabet Merger was carried
out on a highly compressed schedule, in advance of other transactions to implement the
Corporate Reorganization in order to have it in place for the 4th Quarter of 2015. This
separation of the related transactions, together with the novelty of the Delaware Section 251(g)
procedure, caused confusion among Google’s attorneys regarding Google’s filing obligations
before the Alphabet Merger, as opposed to before other (as yet unconsummated) transactions that
may involve actual transfer of Commission licenses among affiliates. Google’s oversight was
entirely inadvertent. Upon identifying the issue, Google’s attorneys immediately took steps to
prepare and file this Form 312. Google is providing guidance to all relevant in-house attorneys
to ensure that a similar oversight does not occur in the future, including in connection with other
steps of the Corporate Reorganization.

       Waiver of Section 25.119(a) of the Commission’s rules also serves the public interest.
As discussed above, the Alphabet Merger creates a new holding company structure and does not
involve an assignment of any license. Shareholder control of Skybox is unaffected, as are
Skybox services. Moreover, under the Alphabet holding structure, Google, and by extension
Skybox, will be able to operate in a more efficient, economical, and transparent manner,
allowing the company to concentrate on its revenue generating activities, to expand its
addressable customer base and to continue offering technologically advanced services.




5
        See Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (Northeast
Cellular).
6
        See WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular, 897 F.2d at
1166.
7
        See id.

                                                  5



Document Created: 2015-10-19 12:29:53
Document Modified: 2015-10-19 12:29:53

© 2024 FCC.report
This site is not affiliated with or endorsed by the FCC