Chamath Palihapitiya Divests Personal Holdings in Virgin Galactic

The individual widely credited with initiating the recent surge in SPAC activity, through the merger of Virgin Galactic and his Social Capital Hedosophia firm, has now sold off his remaining personal stake in the space tourism venture.

While Chamath Palihapitiya continues to serve as chairman of Virgin Galactic’s board, his direct ownership has been reduced to zero. He maintains a 6.2% shareholding in the company alongside investor Ian Osborne.

Statement to TechCrunch

Palihapitiya released a statement to TechCrunch, communicated through Virgin Galactic representatives.

Previously, in December 2020, Palihapitiya sold 3.8 million shares. He explained this sale was intended to improve his financial flexibility and fund new initiatives planned for 2021.

At that time, he reaffirmed his dedication to and enthusiasm for the future prospects of SPCE, Virgin Galactic’s NYSE stock ticker.

Recent Share Sale

This week’s transaction involved the sale of 6.2 million shares, generating approximately $213 million for Palihapitiya.

Virgin Galactic’s Recent Developments

Virgin Galactic has encountered challenges in its testing phase, resulting in a postponement of its initial commercial tourist flights to 2022. The original target date was sometime in the current year.

Last July, Michael Colglazier, a leader from Disney Parks, was appointed as the new CEO, succeeding George Whitesides. Whitesides transitioned to the role of chief space officer, but has since announced his departure from the company.

Whitesides’ decision is reportedly motivated by a desire to pursue opportunities in public service.

SPAC Activity in the Space Sector

The space industry has seen significant SPAC activity recently. Mergers involving companies like Astra, Spire, Rocket Lab, BlackSky, and Momentus have been announced over the past year.

As an early mover in this trend, Virgin Galactic’s performance will be closely monitored as a benchmark for evaluating the effectiveness of this strategy.

Pre-market trading shows the company’s share value down by over 5%, continuing a downward trend since reaching its peak in mid-February.

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