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Thursday, Nov 21, 2024

Virgin Galactic Merger Forms First Public Space Tourism Company

Virgin Galactic is merging with public investment firm Social Capital Hedosophia to form the first publicly traded commercial space tourism company. Shareholders in Virgin Galactic, in Mojave, will retain a 51 percent ownership of the company, while those in Social Capital Hedosophia, in Palo Alto, will hold the remaining ownership. Social Capital will invest about $800 million into Virgin Galactic, including $100 million from its chief executive and founder, Chamath Palihapitiya. Palihapitiya and Adam Bain, lead independent director, will join the Virgin board of directors. Virgin Galactic Chief Executive George Whitesides said the transaction was the next step in the company’s journey. “We believe it will offer us the financial flexibility to build a thriving commercial service and invest appropriately for the future,” Whitesides said in a statement. Virgin Galactic will take paying passengers up in the six-seat Unity spacecraft for a sub-orbital flight that will include a period of weightlessness. The company will complete flight tests at the Spaceport America facility in New Mexico before commencing a full commercial service for passengers and research payloads. The transaction is expected to close by the end of the year.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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