SPACovirus Sweeps Space Sector

Richard Branson celebrates the first Virgin Galactic trade on the New York Stock Exchange. (Credit Virgin Galactic)
Wall Street’s latest easy money craze has attracted a growing number of space companies. But, just because they can go public, should they?

by Douglas Messier
Managing Editor

Seven space companies have gotten caught up in the SPACovirus sweeping through Wall Street. The impact on the space industry is going to be interesting to watch.

A SPAC is a special purpose acquisition company. It’s a publicly traded investment firm that, with outside investors, acquires or merges with another company, and then takes the acquisition public under its own name.

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Branson Wants to Take Virgin Orbit Public Through SPAC

Virgin Orbit Cosmic Girl Boeing 747 takes off from the Mojave Air and Space Port. (Credit: Virgin Orbit)

First Virgin Galactic. Now Virgin Orbit.

The Wall Street Journal reports that Richard Branson has hired Credit Suisse Group AG and LionTree LLC to take Virgin Orbit public through a special purpose acquisition company (SPAC) at a valuation of up to $3 billion.

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Wall Street Thinks Most SPACs are a Joke

Richard Branson celebrates the first Virgin Galactic trade on the New York Stock Exchange after merging with a special purpose acquisition company (SPAC). (Credit Virgin Galactic)

by Douglas Messier
Managing Editor

Over at Fast Company, William D. Cohan says professional investors and financial analysts have a low opinion of the special purpose acquisition companies (SPACs), which are being used by Virgin Galactic and six other space companies to go public. (SPACs are an inside joke on Wall Street, and the joke is on you)

SPACs are investment vehicles that are already publicly traded on the stock exchange. Their goal is to acquire or merge with other companies, which then go public under their own names.

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Why Virgin Galactic Went SPAC

Richard Branson celebrates the first Virgin Galactic trade on the New York Stock Exchange. (Credit Virgin Galactic)

by Douglas Messier
Managing Editor

During the SmallSat Symposium last week, Richard Branson was asked why Virgin Galactic had gone public using a special purpose acquisition company (SPAC).

“I’m impatient. The SPAC gets through all of the rigmarole of public companies. Yes, I thought, that’s great, let’s do it,” he replied.

Branson was half right. A SPAC makes it a lot easier for a company to go public. But, impatience was probably not the main reason Virgin Galactic went SPAC.

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Space Tourism Rewind: Branson & Richardson Announced Spaceport America Deal 15 Years Ago

Early Spaceport America artwork showed facilities built underground. (Credit: Virgin Galactic)

New Mexico to spend $225 million
Commercial spaceflight set to begin in 2010
Virgin Galactic to fly 50,000 peassengers in 10 years

SANTE FE, NM, Dec. 14, 2005 (New Mexico Economic Development Department PR) — Governor Bill Richardson and Sir Richard Branson, Chairman of the Virgin Companies, today announced that Virgin Galactic, the world’s first commercial space tourism business, will locate its world headquarters and Mission Control in New Mexico. The agreement between the State of New Mexico and Virgin Galactic calls for New Mexico to build a $225 million spaceport in the southern part of the state, on 27- square miles of state land.

“This is a historic day for our great state, and particularly Southern New Mexico,” said Governor Bill Richardson. “With Virgin at the controls, enthusiasts from around the world will fly to space, routinely and safely, just a few years from now. And they will be flying from the world’s first purpose-built spaceport here in New Mexico. I am excited that New Mexico will be on the ground floor of this new industry, and I know this will mean new companies, more high-wage jobs and opportunities that will move our state’s economy forward.”

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Virgin Orbit has Raised $1 Billion, Needs $200 Million More

LauncherOne operated in powered flight for only seconds before an anomaly shut it down after being dropped from the Cosmic Girl Boeing 747. (Credit; Virgin Orbit)

by Douglas Messier
Managing Editor

Richard Branson’s Virgin Orbit satellite launch company needs another $200 million in investment after having already raised $1 billion.

So said the British billionaire during The Wall Street Journal’s recent Tech Live conference. The amount raised is considerably larger than a previous estimate of $700 million.

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Virgin Galactic Pivots High-speed Aircraft Program in a Crowded Field

Credit: Douglas Messier

Virgin Galactic’s record of delays and broken promises raises doubts about its ambitious supersonic aircraft project as company founder Richard Branson fights to save his struggling empire in the midst of a global pandemic.

Updated on 10/27/20 at 12:39 p.m. PDT to include spending comparison of Virgin Orbit to Rocket Lab.

by Douglas Messier
Managing Editor

Richard Branson’s dream of a suborbital Virgin Galactic vehicle zipping passengers between distant cities at hypersonic speeds above Mach 5 (6,174 km/h, 3,836 mph) is dead. At least for now.

In August, the space tourism company he founded pivoted to a slower supersonic Mach 3 (3,704 km/h, 2,302 mph) business jet. Virgin Galactic unveiled a mission concept for an aircraft that would carry 9-19 passengers at a cruising altitude of 60,000 ft (18,288 m).

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Supersonic & Hypersonic Civilian Transport Projects in Development

Overture supersonic passenger jet (Credit: Boom Supersonic)

by Douglas Messier
Managing Editor

Boom Supersonic’s recent rollout of its XB-1 supersonic demonstrator aircraft marked a milestone in an accelerating race to revive an era of civilian supersonic travel that ended when the Concorde jetliner was retired in 2003.

XB-1, aka Baby Boom, is set to begin flight tests next year from the Mojave Air and Space Port in California. The Mach 2.2 (2,717 km/h, 1,688 mph) vehicle is the precursor to Boom’s 55-seat Overture airliner, which is scheduled to begin carrying passengers in 2029.

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Richard Branson’s Virgin Orbit is Seeking Investors

LauncherOne operated in powered flight for only seconds before an anomaly shut it down after being dropped from the Cosmic Girl Boeing 747. (Credit; Virgin Orbit)

Richard Branson’s Virgin Orbit is look for investors. The company posted the following notice on its website:

Virgin Orbit LLC, (together with its subsidiaries and affiliates, the “Company”), is exploring a possible transaction and has retained LionTree Advisors LLC (“LionTree”) and Perella Weinberg Partners LP (“PWP”) (together, the “Financial Advisors”).

The website includes a link to a password protected presentation that potential investors can review.

Virgin Orbit is developing LauncherOne, a small-satellite booster that is air launched from a modified Boeing 747 airliner.

Virgin Orbit’s first launch attempt failed in late May when the rocket’s engine stopped about five seconds after it began firing. The company is planning another launch attempt later this year.

The travel-heavy Virgin Group has been struggling to fund its companies due to the COVID-19 pandemic.

Branson Looks to Unprofitable Virgin Galactic to Help Save Reeling Empire

Richard Branson celebrates the first Virgin Galactic trade on the New York Stock Exchange. (Credit Virgin Galactic)

by Douglas Messier
Managing Editor

For nearly 16 years, Richard Branson’s obsession with space travel has been massive money pit for the billionaire’s Virgin Group. Branson’s conglomerate has poured more than $1 billion into Virgin Galactic, Virgin Orbit and The Spaceship Company without launching a single tourist or satellite into space while generating minuscule revenues and not a single penny of profit.

And yet, by the strange workings of modern finances, this money losing effort will be helping to prop up the Virgin Group, which has been laid low financially by the global COVID-19 pandemic.

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Virgin Galactic Supports its Communities During COVID-19 Pandemic

George Whitesides

Message from George Whitesides
Virgin Galactic CEO

All over the globe, we are seeing and feeling the impact of the COVID-19 pandemic.  This is one of the most significant crises we have seen in our lifetimes.  Whether it is the brave doctors and nurses working around the clock to help patients, children helping their elderly parents stay safe and fed, or parents and teachers keeping their kids educated while schools are physically closed – we are all in this together and we have a responsibility to help care for one another.

With the impact of COVID-19 mounting every day, our team has worked hard to help tackle this crisis, with an initial focus on the communities we work in.  I am proud of the commitment and initiative of our people at Virgin Galactic, The Spaceship Company, and Virgin Group in helping to support relief efforts.  Led by our in-house flight doctors, our COVID-19 team has been working closely with local hospitals, commercial suppliers, and government authorities to provide help where it is needed most.

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Softbank Writes Down $424.7 Million Investment in OneWeb

Ouch!

Citing a story in the Sunday Telegraph, City A.M. reports that Softbank took a £380 million ($424.7 million) impairment loss on its investment in OneWeb. Softbank is the largest shareholder in the Internet satellite company.

Airbus, Qualcomm and Virgin Group are among other shareholders in the London-based satellite firm, which boasts a valuation of more than $1bn (£823m) and has earned sought-after “unicorn” status.

In addition to the Softbank writedown, some early investors have lost as much as half of the value of their stakes, according to the report

Oneweb, which secured $1.25bn in its latest Softbank-led funding round, has ramped up its plans for satellite production amid competition from Elon Musk’s SpaceX and Jeff Bezos’s Amazon.

Virgin Galactic SpaceShipTwo Powered Flight Set for Thursday Morning

SpaceShipTwo flies under power for the third time in January 2014. (Credit: Ken Brown)

by Douglas Messier
Managing Editor

The preliminaries are over. And now the moment of truth has arrived for Richard Branson’s Virgin Galactic.

Almost 3.5 years after SpaceShipTwo Enterprise broke up during a flight test on Halloween 2014, the company is scheduled to conduct the first powered flight of SpaceShipTwo Unity later this morning from the Mojave Air and Space Port in California. The test was preceded by seven glide flights.

I’ll be providing live updates on the flight on Twitter @spacecom.

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A Look Back at the Space Year That Was

Total solar eclipse photographed from NASA Armstrong’s Gulfstream III. (Credit: (NASA/Carla Thomas)

by Douglas Messier
Managing Editor

I realize it’s a bit late, but here’s a look back at the major developments in space in 2017.

I know that I’m probably forgetting something, or several somethings or someones. Fortunately, I have eagle-eyed readers who really seem to enjoy telling me just how much I’ve screwed up. Some of them a little too much….

So, have at it!  Do your worst, eagle-eyed readers!

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