Saving the Pandemic-Beaten Business: Branson to Sell Virgin Galactic Shares13th Sep 2021
Virgin Galactic is being continually mentioned today. The reasons are often connected with yet another breakthrough: a successful launch, for example. Last month, Sir Richard Branson amazed all with his first flight to the edge of space in a rocket plane.
Will Richard Branson Sell Virgin Galactic?
Everyone is sure that Branson is doing well. And if we look at Virgin Galactic, this is right. That is why the fact that 10.5 million shares were sold last Thursday and the stake was reduced to 18% is a bit shocking.
The Real Reasons Behind Selling Virgin Galactic Shared
The point is that the rest of Virgin Group was significantly beat up by the pandemic and the subsequent economic slowdown. In 2020, the company faced a loss of £659 million. Hotel and gym businesses, cruise ships, and airlines owned by Virgin Group were especially affected. The airlines (partly owned by the American Delta Air Lines that holds a 49% stake) lost 80% of passengers. To keep these branches from a complete breakdown, Branson decided to sell the shares of the most successful part of the Group — Virgin Galactic.
By doing so, the company gained an extra $300 million. Fortunately for Sir Richard, Virgin Group is still the largest shareholder of Virgin Galactic.