Virgin Galactic Chairman Chamath Palihapitiya Steps Down From Board

(Bloomberg) — Serial dealmaker Chamath Palihapitiya stepped down as chairman of Virgin Galactic Holdings Inc., an abrupt departure as the space-tourism company moves from startup phase toward paying flights.

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Palihapitiya plans to focus on his other board commitments and the resignation did not result from any disagreements with the company, Virgin Galactic said Friday. Current director and Chief Investment Officer Evan Lovell was appointed interim chairman as the company begins a search for a successor.

“Chamath was instrumental in the launch of Virgin Galactic as a public company and, as our inaugural chair, his deep and astute insights have been incredibly valuable,” Chief Executive Officer Michael Colglazier said in a statement. “We’ve always known the time would come when he would shift his focus to new projects and pursuits.”

The board shakeup comes at a point of transition for Virgin Galactic, one of a handful of firms pioneering near-space travel. Founder Richard Branson flew on a test flight last year, and the shares jumped earlier this week after the company started ticket sales in the hopes of launching commercial service this year.

Read more: Virgin Galactic shares soar as ticket sales open

Palihapitiya, a former Facebook Inc. executive who has raised billions via blank-check firms, earned a reputation as the “SPAC King” for his use of the investment tool to bring companies public. Virgin Galactic began trading in 2019 through a merger with Palihapitiya’s Social Capital Hedosophia.

He remained affiliated with Virgin Galactic both as its chairman and a major shareholder. He sold a $213 million stake last March to fund an investment to fight climate change.

Shares of Virgin Galactic fell 4.4% at 9:36 a.m. Friday in New York. Through Thursday, they lost a third of their value this year amid a market shift away from higher-risk investments.

(Updates with share trading in final paragraph)