Photo: marsscientific.com & Trumbull Studios
Virgin Galactic is one of those private space exploration companies that is slowly growing under the shadow of behemoth SpaceX. Promising a different business model, and access to space for all those who can afford it, the British company announced this week it plans to go public.
In a lengthy letter published on Virgin’s website, the company’s leader Richard Branson said he plans to take this step by using “a New York Stock Exchange-listed investment vehicle” run by Chamath Palihapitiya and Adam Bain.
Palihapitiya is a former senior executive at Facebook, while Bain is former Twitter COO. The two, together with former Skype CEO Tony Bates set up a while ago the Social Capital, a so-called blank-check company looking to invest in promising startups.
According to The Guardian, Social Capital will acquire a 49 percent stake in Virgin Galactic in exchange for a 49 percent stake.
The partnership with Social Capital comes after Virgin pulled out of a $1 billion deal with Saudi Arabia in the aftermath of the Jamal Khashoggi killing.
There’s no timeframe for the public listing of the company, but it will probably happen by the end of the year.
“Opening Virgin Galactic to further external investment has been on the cards for a while,” says Branson in a statement.
“Great progress in our test flight programme means that the remaining hurdles, before our beautiful spaceship starts a full commercial service, are steadily being cleared.”
Virgin’s business model centers on space tourism. One ticket to space costs around $200,000 and ensures a very short trip to the edge of space, but only after wannabe astronauts would have spent 3 days in training. To date, says Branson, 600 people have signed up for his company’s services.
The first flight into space of Virgin’s spaceship, VSS Unity, took place at the end of last year. Even before this milestone, Branson hinted he himself would be flying “within months.”
Seven months later, we’re still waiting.
UPDATE: Virgin Galactic and Social Capital announced a merger. Details here.
Palihapitiya is a former senior executive at Facebook, while Bain is former Twitter COO. The two, together with former Skype CEO Tony Bates set up a while ago the Social Capital, a so-called blank-check company looking to invest in promising startups.
According to The Guardian, Social Capital will acquire a 49 percent stake in Virgin Galactic in exchange for a 49 percent stake.
The partnership with Social Capital comes after Virgin pulled out of a $1 billion deal with Saudi Arabia in the aftermath of the Jamal Khashoggi killing.
There’s no timeframe for the public listing of the company, but it will probably happen by the end of the year.
“Opening Virgin Galactic to further external investment has been on the cards for a while,” says Branson in a statement.
“Great progress in our test flight programme means that the remaining hurdles, before our beautiful spaceship starts a full commercial service, are steadily being cleared.”
Virgin’s business model centers on space tourism. One ticket to space costs around $200,000 and ensures a very short trip to the edge of space, but only after wannabe astronauts would have spent 3 days in training. To date, says Branson, 600 people have signed up for his company’s services.
The first flight into space of Virgin’s spaceship, VSS Unity, took place at the end of last year. Even before this milestone, Branson hinted he himself would be flying “within months.”
Seven months later, we’re still waiting.
UPDATE: Virgin Galactic and Social Capital announced a merger. Details here.
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