Merger Leaves Virgin Orbit with Less Than Half of Funding Originally Planned

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

by Douglas Messier
Managing Editor

In a clear sign of investor skepticism, Richard Branson’s Virgin Orbit will receive only about $228 million of the $483 million in growth capital it expected after merging with the NextGen Acquisition II special purpose acquisition company (SPAC).

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Report: Virgin Orbit Preparing to Go SPAC

LauncherOne ignites after being dropped from Cosmic Girl. (Credit: Virgin Orbit)

Following in the footsteps of its sister company, Virgin Orbit is preparing to go public through a merger with a special purpose acquisition company (SPAC), Sky News reports.

Sky News can reveal that Virgin Orbit is close to finalising a deal to combine with NextGen Acquisition II, a special purpose acquisition company (SPAC) set up by George Mattson, a former Goldman Sachs banker.

Sources said this weekend that NextGen II was in exclusive talks with Sir Richard’s Low Earth Orbit satellite business, which is 80%-owned by the tycoon’s Virgin Group empire.

Mubadala, the Abu Dhabi sovereign fund, owns the remaining 20% of Virgin Orbit’s shares.

A definitive deal valuing Virgin Orbit at approximately $3bn (£2.1bn) could be announced in the coming weeks, according to insiders…

The choice of NextGen is a logical one, since Mr Mattson is a director of Virgin Galactic, and is an experienced aviation industry insider, having also been a director of Delta Air Lines for nearly nine years.

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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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Mubadala’s New Fund Seeks to Attract NewSpace Companies to Abu Dhabi

Spacewatch Global reports on efforts to attract NewSpace and other technology companies to Abu Dhabi:

Abu Dhabi’s sovereign wealth fund Mubadala is set to create a start-up ecosystem in Abu Dhabi that will attract New Space and other emerging technology companies to the Gulf Arab state. The ecosystem will be called Hub71 and will include Softbank’s Vision Fund and Microsoft as partners, according to Khaldoon Khalifa Al Mubarak – Mubadala’s Chief Executive Officer – in an interview with Nikkei Asian Review.

Hub71 is being funded by Mubadala to the tune of one billion Dirhams (U.S.$272 million) that will be used for subsidizing or to co-invest in promising startups involved in New Space, artificial intelligence, biotechnology, and microelectronics. Hub71 will be based in the financial district of Abu Dhabi, the capital city of the United Arab Emirates, and is part of the UAE’s overall strategy of diversifying its economy away from its dependency on hydrocarbons.

Mubadala manages assets worth over U.S.$250 billion in the United States, Europe, and more recently, in the Asia-Pacific region. Mubadala’s investments in Asia – totaling U.S.$15 billion to date – have been primarily made via Softbank’s Vision Fund.











UAE Eyeing Virgin Galactic SpaceShipTwo Flights

A view from SpacehipTwo. (Credit: Virgin Galactic)

The United Arab Emirates (UAE) is looking to host flights of Virgin Galactic’s SpaceShipTwo, The National reports.

Mohammad Al Ahbabi, director of the UAE Space Agency, said the organisation is working with Virgin Galactic on a bid to operate tourist space flights from Al Ain International Airport in the coming years….

“The reason why the company opted for Al Ain airport is that it is less crowded than other UAE airports, which are scheduled with thousands of flights.”

Airbus has used Al Ain airport to stress test its new aircraft in high summer temperatures, including the wide-body A350.

It was chosen for its hot, dry conditions and relatively quiet runways.

Abu Dhabi is part-owner of Virgin Galactic having invested $390 million in the company through its sovereign wealth fund, Mubadala Investment Company (formerly known as aabar Investments).