Sir Richard Branson Puts the Brakes on Virgin Galactic Investment
Richard Branson to Discontinue Investment in Virgin Galactic
Branson stops investing in Virgin Galactic.
Sir Richard Branson, the maestro of entrepreneurial ventures, has announced that he will no longer be pouring money into his space travel company, Virgin Galactic. The financial fiasco has forced Branson to acknowledge that he no longer holds the title of having the “deepest pockets” in the business world. This setback, a consequence of the Covid-19 pandemic, has prompted the visionary to tighten his belt. But fear not, space enthusiasts, for the dream of space travel is far from extinguished.
Virgin Galactic, founded by Branson in 2004, recently made headlines with the news that it would be slashing jobs and putting commercial flights on hold from 2024 onwards. This, however, is just a temporary glitch in the cosmic journey, as Branson assures that there is still a cool $1 billion in the coffers to keep the venture afloat until 2026. Market analysts even predict that another appeal to investors will be made in 2025. So, while the immediate future may seem uncertain, the stars are still aligning for Virgin Galactic.
Branson remains confident in the Unity space plane, which has already proved its mettle with its first commercial space flight. And what a flight it was, with tickets starting at a jaw-dropping $450,000! Despite this extraordinary price tag, the Unity has captured the imagination of prospective astronauts and investors alike. However, the news of Branson’s investment pullback had an undeniable impact on the market, with Virgin Galactic stock plummeting a heart-stopping 16% and trading below $2 per share when the US market opened on December 5th.
But let’s not forget that Branson is a shrewd businessman. In fact, he had previously sold off approximately $1 billion of his holdings in Virgin Galactic between 2020 and 2021. However, his venture remains one of his flagship investments, with Virgin Group, the manager of his vast empire, still retaining a significant stake. Branson has now shifted his focus to philanthropy, engaging in projects such as Virgin Unite and Galactic Unite. These initiatives aim to bring people together and inspire the next generation of astronauts by promoting STEM subjects.
While Branson takes a step back from Virgin Galactic, the company’s Q3 financial results reveal a healthy balance sheet, with $1.1 billion in cash, cash equivalents, and marketable securities as of September 30, 2023. The next thrilling spaceflight is scheduled for January 2024, and a state-of-the-art spaceship factory is set to open its doors in Phoenix, Arizona, making waves in the mid-year. And for those eagerly anticipating the Delta spaceship, fear not — it’s still on track to generate revenue by 2026.
It’s worth noting that Virgin Galactic’s sister venture, Virgin Orbit, faced a cosmic catastrophe when it filed for bankruptcy in May 2023. This setback may have sparked a more cautious approach to future Virgin Galactic investments. Nonetheless, the visionaries at Virgin Galactic remain undeterred and are laser-focused on charting a course to the stars.
So, while Sir Richard Branson may no longer be launching bundles of cash into Virgin Galactic’s stratosphere, the dream of space travel endures. Brace yourselves, my fellow tech enthusiasts, for the sky is still the limit. And who knows, one day you might just be floating among the stars, sipping a glass of space champagne and living the epitome of the term “out of this world.”
