Richard Branson will be selling a major stake in Virgin Galactic in an attempt to raise $500 million to support his other businesses. Once he sells this major stake, he might lose his controlling interest. He presently owns 55 percent of Virgin Galactic.
Branson has not used his own funds to support his other businesses
In the recent few weeks, Branson has come under fire for wanting government funds to help bail out his airlines. He has been criticized for not using his own funds to support his flailing companies that have made huge losses due to the ongoing coronavirus epidemic. The wealthy business tycoon briefly suggested using his luxury Necker Island resort as collateral to secure a UK government loan. However, no formal offer has been made.
The Virgin Group has said that it will use the funds acquired from the Virgin Galactic sale to support its “leisure, holiday and travel businesses” hit by “the unprecedented impact” of COVID-19. The carrier was forced to cut its workforce by one third and also pull out of London Gatwick. Virgin Australia slipped in voluntary administration after witnessing a consistent fall in traffic.