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GMCStream Flash News Virgin Galactic Space Tourism Gamble - “Virgin Galactic, Richard Branson’s space-tourism venture, is preparing for liftoff as a publicly traded company. Social Capital Hedosophia Holdings Corp. IPOA -a special-purpose acquisition company, or SPAC, is planning to invest roughly $800 million in Virgin Galactic for a 49% stake. As part of the deal with Social Capital Hedosophia, a publicly traded shell, Virgin Galactic later this year would become the first publicly listed human-spaceflight company.

Virgin Galactic expects that this deal will give it enough capital to fund the business until its spaceships can commercially operate and turn a profit.” Jeff Bezos’ Blue Origin and Elon Musk’s Space Exploration Technologies Corp., have not the billions in capital to venture into the high risk of space tourism that may lead to high insurance rates and the deaths of travelers. SpaceX boosters have exploded in the past and Blue Origin is still a pipe dream in the mind of Amazon’s CEO.

Richard Branson said in a WSJ interview that most of the proceeds from this deal will be used “to make sure we can enable as many people in the world as possible to become astronauts.” Eleven years ago Virgin Galactic was the pioneer space effort to propel tourists and small satellites into space using cheap rockets and various other unconventional launch systems. Financial analyst project space tourism will be the fastest-growing segment in commercial space. Branson has sold 600 people to invest $80 million in total to secure seats on his space plane platform.

Virgin Galactic has already raised more than $1 billion since it was founded fourteen years ago. Saudi Arabia’s Public Investment Fund announced plans to invest $1 billion in the company but did not see a reasonable return and pulled out. “Chamath Palihapitiya, chief executive of venture-capital firm Social Capital LP and a former Facebook Inc. executive, contacted Branson about a potential investment through the SPAC. The $800 million includes about $100 million that Mr. Palihapitiya is putting into the deal. He will serve as chairman of the company. “There’s nothing as exciting as this next-generation space race,” said Mr. Palihapitiya. “It’s attracting the most talented and respected entrepreneurs of our generation.” SPACs typically have two years to use capital they raise to buy a company and take it public. Social Capital Hedosophia has been trading on the New York Stock Exchange since September 2017 and is nearing the end of the time allotted to purchase a company. Mr. Branson said in an interview that most of the proceeds from this deal will be used “to make sure we can enable as many people in the world as possible to become astronauts.”

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Maureen Farrell contributed – Branson’s Space Unit to Go Public

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About GMCstream

GMCStream is an American Internet media company based in Mountain View, California. The company is a social media news and information company with a directed focus on digital broadband media. GMCStream researches, analyzes, and highlights MILCOMM problems and solutions that may affect Global National Security. GMCStream was founded by Richard Kusiolek, an expert in Satellite Communications, cyber security, defense, and aerospace with private sector experience and expertise in international business development and strategy, particularly in China, Japan, and Eastern Europe. The company is growing organically into a specialized niche media and technology company providing streaming video coverage on a variety of topics including politics, space and missile systems, cyber-warfare, defense networks. STEM career webinars, and planet exploration.