Tag: Richard Branson

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.

Capitalism in space: Virgin Galactic earlier in January laid off 40 workers, saying it was in preparation for moving their launch operations to New Mexico where they will be doing their commercial flights.

This is about 5% of their payroll, so at first glance it does not appear to be a significant number. Yet, if they were about to move to commercial operations I would think their payroll would grow, not shrink.

The article itself buys into the company’s tediously overworn sales pitch (that they have been pushing for more than a decade) that they are about to start commercial operations, flying paying tourists, but this is just not credible. For example, as part of this sales pitch they made a big deal about hiring Under Armour to make the flight suits for their flights. Yet, no designs have been released, even though Virgin Galactic has been working on doing commercial tourist flights for more than fourteen years. Only now they realize they need flight suits?

In 2017 I predicted that Virgin Orbit would fly a commercial flight before Virgin Galactic, even though Orbit only started to seriously build its rocket in 2015, about a dozen years after Galactic got started. I stand by that prediction, which I expect will prove true this year.

At the time I also predicted that Virgin Galactic’s Unity spaceship will never make orbital space, defined by practically everyone since around 1970 to be 67 miles elevation, or 100 kilometers. I also stand by that prediction, because only just before Unity’s flight to barely 50 miles did the issue of the definition of space reappear after almost a half century. Virgin Galactic has been pushing to get the definition changed because their spacecraft probably cannot get to 67 miles.

I just wish reporters would stop buying into Branson’s sales pitch. Show some skepticism, damn it. Your job isn’t to be a public relations agent for him.

Link here. He finds much of what he reads, especially involving Virgin Galactic, to be seriously wanting.

Expect a more detailed review in the coming days, but essentially Branson’s dishonest hyperbole shines through.