Branson sells 49% of Virgin Galactic, stock to be publicly listed
Capitalism in space: Richard Branson has sold 49% of Virgin Galactic in a deal that will have the company’s stock publicly listed by the end of 2019.
The firm will list its shares as part of a merger deal with Social Capital Hedosophia, a special-purpose acquisition company (SPAC) created by venture capitalist Chamath Palihapitiya. Social Capital Hedosophia, formed by Palihapitiya’s Social Capital and venture capital firm Hedosophia in 2017, will invest $800 million for a 49% stake in the combined company. The firm will have an enterprise value of $1.5 billion, Virgin Galactic said.
…Branson’s space venture would be the first publicly-listed human spaceflight firm, with the stock market listing slated to take place in the second half of 2019.
Branson had been in talks with Palihapitiya since he suspended talks over a Saudi investment in his space companies last year. Riyadh had planned to invest a total of $1 billion into Virgin Galactic and Virgin Orbit, which focuses on small satellites, but the deal fell through over the murder of journalist Jamal Khashoggi.
Branson was the person who said the Saudis backed out because of Khashoggi, but I personally do not believe that story. What I think happened was that, after 15 years of empty promises and no tourist flights, the Saudis suddenly realized that Virgin Galactic was a bad investment, and backed out. Branson now needs cash to keep the company afloat.
I am honestly unfamiliar with the ways of Wall Street. I do not know whether being “publicly listed” means the stock will be available for trade. If so, I expect the stock value to quickly plunge.
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Capitalism in space: Richard Branson has sold 49% of Virgin Galactic in a deal that will have the company’s stock publicly listed by the end of 2019.
The firm will list its shares as part of a merger deal with Social Capital Hedosophia, a special-purpose acquisition company (SPAC) created by venture capitalist Chamath Palihapitiya. Social Capital Hedosophia, formed by Palihapitiya’s Social Capital and venture capital firm Hedosophia in 2017, will invest $800 million for a 49% stake in the combined company. The firm will have an enterprise value of $1.5 billion, Virgin Galactic said.
…Branson’s space venture would be the first publicly-listed human spaceflight firm, with the stock market listing slated to take place in the second half of 2019.
Branson had been in talks with Palihapitiya since he suspended talks over a Saudi investment in his space companies last year. Riyadh had planned to invest a total of $1 billion into Virgin Galactic and Virgin Orbit, which focuses on small satellites, but the deal fell through over the murder of journalist Jamal Khashoggi.
Branson was the person who said the Saudis backed out because of Khashoggi, but I personally do not believe that story. What I think happened was that, after 15 years of empty promises and no tourist flights, the Saudis suddenly realized that Virgin Galactic was a bad investment, and backed out. Branson now needs cash to keep the company afloat.
I am honestly unfamiliar with the ways of Wall Street. I do not know whether being “publicly listed” means the stock will be available for trade. If so, I expect the stock value to quickly plunge.
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation:
5. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
P.O.Box 1262
Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
Chamath Palihapitiya is an original from facebook. Very successful investor, holds investments for the longterm. If he is putting almost 1b in investment its because he believes in the business.
I find the math curious. Who puts up $800M for a 49% stake of a supposedly $1.5B venture? That’s a $50M loss at day one, so seems kind of dumb to me.
MDM–
He’ll extract most of his profit at the IPO
Mr. Z., from the WSJ article July 9.
“SPACs typically have two years to use capital they raise to *buy a company and take it public.* Social Capital Hedosophia has been trading on the New York Stock Exchange since September 2017 and is nearing the end of the time allotted to purchase a company.”