Virgin Galactic chairman sells shares worth $200m to fight climate change
The chairman of Virgin Galactic sold his entire personal stake in the space tourism business this week to earn a $200m (£144m) payday that he plans to direct towards a future climate change investment.
Silicon Valley investor Chamath Palihapitiya, who became chairman of the Richard Branson-founded business when he took it public in 2019, sold 6m shares in the company but retains a joint 6.2pc ownership stake of 15.8m shares through his partnership with investor Ian Osborne.
“I sold 6m shares for $200m which I am planning to redirect into a large investment I am making towards fighting climate change,” he said. “The details of this investment will be made public in the next few months. I remain as dedicated as ever to Virgin Galactic’s team, mission and prospects.”
Shares sank 16pc in New York on Friday.
Virgin Galactic has previously faced scrutiny over its use of fossil fuels. The business said last year that the carbon footprint of its flights will be comparable to a transatlantic business class seat because of its lightweight spaceships and rockets that burn for only 60 seconds.
Mr Palihapitiya previously sold 3.8m shares from his stake in Virgin Galactic in December, writing on social media at the time that “I sold these shares to help manage my liquidity as I fund several new projects starting in 2021.”
Virgin Galactic has faced a series of setbacks that have seen its plan to send paying tourists into space pushed back to 2022 instead of an earlier plan to see commercial trips begin in 2021. The company had originally planned to offer commercial space tourism flights in 2020.
Virgin Galactic announced on Thursday that George Whitesides, its former chief executive of 10 years, would leave the business. He became the company’s chief space officer last year to make way for former Disney Parks head Michael Colglazier as the new chief executive.
