The modern-day space race just took a major step toward maturity, with Sir Richard Branson's announcement that Virgin Galactic will go public. When it lists later this year, Virgin will become the first publicly traded space-tourism company.
Branson made the announcement Tuesday morning along with the venture capitalist Chamath Palihapitiya, whose Social Capital Hedosophia will act as an SPAC ー essentially a public shell company ー to help take Virgin Galactic public. Social Capital Hedosophia will invest $800 million in Virgin in exchange for a 49 percent stake, according to the the Wall Street Journal.
The offering could help Virgin Galactic operate its first private flights to space, which Branson said are planned for next year. The company says 600 people have already paid a combined $80 million for seats on those flights, which will be short, suborbital launches ー at least at first. Branson is competing with Blue Origin, founded by Jeff Bezos, and Elon Musk's SpaceX, to see who can send the first tourists into space.
Founded in 2004, Virgin Galactic began as a pet project of Branson's but has matured into a legitimate spaceflight company by inventing cheap, innovative ways to launch rockets into the atmosphere, such as via carrier planes. Saudi Arabia's sovereign wealth fund had plans to invest $1 billion into the company, but Branson walked away from those discussions after the murder of dissident journalist Jamal Khashoggi last year. It was at that point that he was approached by Palihapitiya, a former Facebook executive, who floated the idea of using his SPAC as the vehicle for a public offering for Virgin Galactic, according to the Journal.
In a statement announcing the plans, Branson said: "We are at the dawn of a new space age, with huge potential to improve and sustain life on Earth."
“By embarking on this new chapter, at this advanced point in Virgin Galactic’s development, we can open space to more investors and in doing so, open space to thousands of new astronauts.”
The House of Representatives recently passed a bill aimed at increasing transparency in healthcare.
If you have a flexible spending account, here's some short information for you so you don't leave money on the table.
With high healthcare costs, bills can quickly add up. In some cases, it is possible to negotiate your medical bills. Barak Richman, law professor at George Washington University, joined Cheddar News to discuss the easiest way to talk to medical debt companies about what's owed.
Millions of people have selected insurance plans for 2024 but sometimes navigating them can be tricky time consuming and expensive. Paula Pant, host of 'Afford Anything' podcast, joined Cheddar News to break down what's needed to know about their insurance plans.
The European Union is investigating Elon Musk's X over alleged illicit content and disinformation on its platform. Cheddar News breaks it all down and discusses what it could mean for users.
Adobe and Figma called off their $20 million merger, Southwest Airlines gets fined, Nippon Steel is buying U.S. Steel and oil and gas prices surge after a pause in shipments.
With more employees being called back to the office, many workers are suddenly protesting by being in the office for as little time as possible. As the term suggests, coffee-badging means coming in for just enough time to have a cup of coffee, show your face, and swipe your badge.
Japan's Nippon steel is buying U.S. Steel for $14.9 billion.
Southwest Airlines will pay a $35 million fine as part of a settlement over a 2022 holiday season disaster that saw the airline cancel thousands of flights and leave millions of people stranded.
Cheddar News' Need2Know is brought to you by Securitize, which helps unlock broader access to alternative investments in private businesses, funds, and other alternative assets. The private credit boom is here and the Hamilton Lane Senior Credit Opportunities Fund has tripled in assets under management in just six months from November 2022 through April this year. Visit Securitize.io to learn more.
