Richard Branson’s Net Worth Drops by 40%: What Happened?
Richard Branson, the 72-year-old founder of Virgin, is one of the wealthiest people in the UK. However, his net worth has dropped by more than a third in the last year. In 2023, his net worth was estimated to be £2.41 billion, a drop of £1.79 billion (42.6%) since 2022. Branson is now 77th on the Sunday Times Rich List, a record of the wealthiest people and families living in the UK. Branson has dropped 33 places on the list since last year, although he is still in the top 0.0001% of the UK’s richest people.
How did Richard Branson make his money?
Richard Branson made his fortune through a diverse range of business ventures, primarily through founding the Virgin Group in 1970. Virgin is a multinational group of more than 400 companies. Virgin Records, established in 1972, signed major artists including the Rolling Stones and Sex Pistols. Branson later branched out into airline travel, telecommunications, finance, and more. Virgin Airways revolutionized the commercial airline industry in the 1980s and helped to make Branson into a household name.
In 1979, Branson bought Necker Island in the Caribbean for $180,000 (£145,000) and spent $10 million (£8 million) transforming it into a luxury resort. He also invested in sectors including hotels, health clubs, space travel, and renewable energy. Branson first became a billionaire in 1991 and has retained the label ever since, despite his net worth fluctuating dramatically.
Why has Richard Branson’s net worth fallen?
Branson’s net worth had dropped before – it dipped slightly in 2015 before remaining steady for three years. In 2019 and 2020 it dropped by around a third, but rallied again the following year. However, this year saw another sharp decrease for Branson, at a time when many other billionaires were growing their wealth.
The 40% drop in Branson’s net worth has been blamed on the devastating effect of the Covid pandemic on the leisure industries which Virgin is heavily involved in. Virgin has also suffered more recent setbacks – a failed satellite launch in January was followed by the company responsible, Virgin Orbit, filing for bankruptcy in March. No fewer than 85% of Virgin Orbit’s staff were laid off, and its assets were sold off for less than 1% of the company’s estimated value.
Branson was the subject of controversy when he asked the government for a loan from the government during the pandemic – he eventually concerned a £600 million government loan and a £1.2 billion private loan. Despite these bailouts, Branson’s Virgin empire continued to suffer setbacks in the post-pandemic years.
Conclusion
Richard Branson may have lost a significant portion of his net worth, but he remains one of the wealthiest people in the UK. His Virgin Group has been at the forefront of numerous sectors, such as airlines, telecommunications, and renewable energy. However, the pandemic has taken a toll on the leisure industries, which has affected Virgin’s business operations. It remains to be seen whether Branson can turn things around and regain some of his lost wealth.
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News Source : Steven Ross
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