Summary
"Sir Richard Charles Nicholas Branson" (born 18 July 1950) is an
English business magnate, best known for his Virgin brand of over 360
companies. Branson's first successful business venture was at age 16,
when he published a magazine called "Student". He then set up a record
mail-order business in 1970. In 1972, he opened a chain of record
stores, Virgin Records, later known as Virgin Megastores and rebranded
as Zavvi in late 2007.
With his flamboyant and competitive style,
Branson's Virgin brand grew rapidly during the 1980s - as he set up
Virgin Atlantic Airways and expanded the Virgin Records music label.
Richard Branson is the 245th richest person according to Forbes' 2008
list of billionaires as he has an estimated net worth of approximately
$2.8 billion USD.
Early life
Branson was born at Stonefield Nursing Home in Blackheath, South
London, the son of Edward James Branson and Eve Branson (née Huntley
Flindt). His grandfather, the Right Honourable Sir George Arthur Harwin
Branson, was a Judge of the High Court of Justice and a Privy
Councillor. Branson was educated at Scaitcliffe School (now Bishopsgate
School) until the age of thirteen. He then attended Stowe School until
he was fifteen. Branson had poor academic performance as a student, yet
by the age of fifteen he had started two ventures that eventually
failed: one growing Christmas trees and another raising budgerigars .
At
seventeen, Branson left school and moved to London, where he began his
first successful business, "Student" magazine. When he was seventeen, he
opened his first charity, the 'Student Advisory Centre.'
Record business
Branson started his first record business after he traveled across
the English Channel and purchased crates of 'cut-out' records from a
record discounter. He sold the records out of the boot of his car to
retail outlets in London. He continued selling cut-outs through a record
mail order business in 1970. Trading under the name 'Virgin' he sold
records for considerably less than the so-called 'High Street' outlets,
especially the chain W. H. Smith. The name 'Virgin' was a selling point
because records were sold in a new condition (unlike in other shops
where records were being handled when listened to in record booths). At
the time many products were sold under restrictive marketing agreements
which limited discounting, despite efforts in the 1950s and 1960s to
limit so-called resale price maintenance. In effect Branson began the
series of changes that led to large-scale discounting of recorded music.
Branson and some colleagues were discussing a new name for his business
when one suggested that it should be called 'Virgin' since they were
all virgins to business .
Branson eventually started a record shop
in Oxford Street in London and, shortly after, launched the record
label Virgin Records with Nick Drake. Branson earned enough money from
his record store to buy a country estate, in which he installed a
recording studio. He leased out studio time to fledgling artists,
including multi-instrumentalist Mike Oldfield.
In 1971, Branson
was arrested and charged for selling records in Virgin stores that had
been declared export stock. He settled out-of-court with UK Customs and
Excise with an agreement to repay the unpaid tax and fines. Branson's
mother Eve re-mortgaged the family home to help pay the settlement .
Virgin
Records' first release was Mike Oldfield's "Tubular Bells", which was a
best-seller and British LP chart topper. The company signed
controversial bands such as the Sex Pistols, which other companies were
reluctant to sign. It also won praise for exposing the public to obscure
avant-garde music such as the krautrock bands Faust and Can. Virgin
Records also introduced Culture Club to the music world. In the early
1980s, Virgin purchased the gay nightclub Heaven. In 1991 in a
consortium with David Frost, Richard Branson had made the unsuccessful
bid for three ITV franchisees under the CPV-TV name.
In 1992, to
keep his airline company afloat, Branson sold the Virgin label to EMI, a
more conservative company which previously had rescinded a contract
with the Sex Pistols, for $1 billion . Branson is said to have wept when
the sale was completed since the record business had been the genesis
of the Virgin Empire. He later formed V2 Records to re-enter the music
business.
Personal life
The eldest and only boy of three children, his sisters are Lindi and
Vanessa. His father Ted followed in his father's footsteps, assuming
the career of a barrister. Branson's mother, Eve, worked in the
theatre, as a glider pilot instructor and as a flight attendant.
Branson had poor academic records, contrasted with excellent performance in sports.
Branson
is married to his second wife, Joan Templeman, with whom he has two
children: Holly, a doctor, and Sam Branson. The couple wed, at Holly's
suggestion when she was eight years old, in 1989 at Necker Island, a 74
acre island in the British Virgin Islands that Branson owns. He also
owns land on the Caribbean Island of Antigua and Barbuda.
In 1998 Branson released his autobiography entitled "Losing My Virginity", an international bestseller.
Branson
was deeply saddened by the disappearance in September 2007 of fellow
adventurer Steve Fossett and wrote an article for "Time" magazine in
October 2007 entitled 'My Friend, Steve Fossett.'
Business ventures
Branson formed Virgin Atlantic Airways in 1984, launched Virgin
Mobile in 1999, Virgin Blue in Australia in 2000, and later failed in a
2000 bid to handle the National Lottery. Branson wrote in his
autobiography of the decision to start an airline:
In 1997,
Branson took what many saw as being one of his riskier business exploits
by entering into the railway business. Virgin Trains won the franchises
for the former Intercity West Coast and Cross-Country sectors of
British Rail. Launched with the usual Branson fanfare with promises of
new high-tech tilting trains and enhanced levels of service, Virgin
Trains soon ran into problems with the rolling stock and infrastructure
it had inherited from British Rail. The company's reputation was almost
irreversibly damaged in the late 1990s as it struggled to make trains
reliably run on time while it awaited the modernisation of the West
Coast Main Line, and the arrival of new rolling stock.
Virgin
acquired European short-haul airline Euro Belgian Airlines in 1996 and
renamed it Virgin Express. In 2006 the airline was merged with SN
Brussels Airlines forming Brussels Airlines. It also started a national
airline based in Nigeria, called Virgin Nigeria. Another airline, Virgin
America, began flying out of the San Francisco International Airport in
August 2007. Branson has also developed a Virgin Cola brand and even a
Virgin Vodka brand, which has not been a very successful enterprise. As a
consequence of these lacklustre performers, the satirical British
fortnightly magazine "Private Eye" has been critical of Branson and his
companies (see "Private Eye" image caption).
After the so-called
campaign of 'dirty tricks' (see expanded reference in Virgin Atlantic
Airways), Branson sued rival airline British Airways for libel in 1992.
John King, then-chairman of British Airways, counter-sued, and the case
went to trial in 1993. British Airways, faced with likely defeat,
settled the case, giving £500,000 to Branson and a further £110,000 to
his airline and had to pay legal fees of up to £3 million. Branson
divided his compensation (the so-called 'BA bonus') among his staff.
On
25 September 2004, Branson announced the signing of a deal under which a
new space tourism company, Virgin Galactic, will license the technology
behind Spaceship One-funded by Microsoft co-Founder Paul Allen and
designed by legendary American aeronautical engineer and visionary Burt
Rutan-to take paying passengers into suborbital space. Virgin Galactic
(wholly owned by Virgin Group) plans to make flights available to the
public by late 2009 with tickets priced at US$200,000 using Scaled
Composites White Knight Two.
Branson's next venture with the
Virgin group is Virgin Fuels, which is set to respond to global warming
and exploit the recent spike in fuel costs by offering a revolutionary,
cheaper fuel for automobiles and, in the near future, aircraft. Branson
has stated that he was formerly a global warming skeptic and was
influenced in his decision by a breakfast meeting with Al Gore.
Branson
has been tagged as a 'transformational leader' in the management
lexicon, with his maverick strategies and his stress on the Virgin Group
as an organization driven on informality and information, one that is
bottom-heavy rather than strangled by top-level management.
He was 9th in the Sunday Times Rich List 2006, worth just over £3 billion.
On
21 September 2006, Branson pledged to invest the profits of Virgin
Atlantic and Virgin Trains in research for environmentally friendly
fuels. The investment is estimated to be worth $3 billion.
On 4
July 2006, Branson sold his Virgin Mobile company to UK cable TV,
broadband, and telephone company NTL/NTL:Telewest for almost £1 billion.
As
part of the sale, the company pays a minimum of £8.5 million per year
to use the Virgin name and Branson became the company's largest
shareholder. The new company was launched with much fanfare and
publicity on 8 February 2007, under the name Virgin Media. The decision
to merge his Virgin Media Company with NTL was in order to integrate
both of the companies' compatible parts of commerce. Branson used to own
three quarters of Virgin Mobile, whereas now he owns 15 percent of the
new Virgin Media company.
In 2006, Branson formed Virgin Comics
and Virgin Animation an entertainment company focussed on creating new
stories and characters for a global audience. The Company was founded
with author Deepak Chopra, filmmaker Shekhar Kapur and entrepreneurs
Sharad Devarajan and Gotham Chopra.
Branson also launched the
Virgin Health Bank on 1 February 2007, offering parents-to-be the
opportunity of storing their baby's umbilical cord blood stem cells in
private and public stem cell banks after their baby's birth.
In
June 2006, a tip-off from Virgin Atlantic led US and UK competition
authorities to investigate price-fixing attempts between Virgin Atlantic
and British Airways. In August 2007, British Airways was fined £271
million over the allegations. Virgin Atlantic was given immunity for
tipping off the authorities and received no fine - a controversial
decision the Office of Fair Trading defended as being in the public
interest.
On 9 February 2007, Branson announced the setting up of a
new Global science and technology prize-The Virgin Earth Challenge-in
the belief that history has shown that prizes of this nature encourage
technological advancements for the good of mankind. The Virgin Earth
Challenge will award $25 million to the individual or group who are able
to demonstrate a commercially viable design which will result in the
net removal of anthropogenic, atmospheric greenhouse gases each year for
at least ten years without countervailing harmful effects. This
removal must have long term effects and contribute materially to the
stability of the Earth's climate.
Branson also announced that he
would be joined in the adjudication of the Prize by a panel of five
judges-all world authorities in their respective fields: Al Gore, Sir
Crispin Tickell, Tim Flannery, Jim Hansen and James Lovelock. The panel
of judges will be assisted in their deliberations by The Climate Group
and Special Advisor to The Virgin Earth Prize Judges, Steve Howard.
Richard
Branson got involved with football when he sponsored Nuneaton Borough
A.F.C. for their January 2006 FA Cup 3rd round game against
Middlesbrough F.C.. The game ended 1-1 and the Virgin brand was also on
Nuneaton Borough's shirts for the replay which they eventually lost 2-5.
In August 2007, Branson announced that he bought a 20 percent stake in Malaysia's AirAsia X.
On
October 13, 2007, Branson's Virgin Group sought to add Northern Rock to
its empire after submitting an offer which would result in Branson
personally owning 30% of the company, changing the company's name from
Northern Rock to Virgin Money.
The Daily Mail ran a campaign
against his bid and Vince Cable suggested in the House of Commons that
Branson's criminal conviction for tax evasion might be felt by some as a
good enough reason not to trust him with public money.
On January
10, 2008, Branson's Virgin Healthcare announced that it would open a
chain of health care clinics that would offer conventional medical care
alongside homeopathic and complementary therapies. The Financial Times
reported that
Ben Bradshaw, UK's health minister, welcomed the
launch. 'I am pleased that Virgin Healthcare is proposing to work with
GPs to help develop more integrated services for patients.'
Humanitarian initiatives
In the late 1990s, Branson and musician and activist Peter Gabriel
discussed with Nelson Mandela their idea of a small, dedicated group of
leaders, working objectively and without any vested personal interest to
solve difficult global conflicts .
On July 18, 2007, in
Johannesburg, South Africa, Nelson Mandela announced the formation of a
new group, The Elders, in a speech he delivered on the occasion of his
89th birthday. The founding members of this group are Desmond Tutu,
Graça Machel, Kofi Annan, Ela Bhatt, Gro Harlem Brundtland, Jimmy
Carter, Li Zhaoxing, Mary Robinson, and Muhammad Yunus.
The Elders will be independently funded by a group of 'Founders', including Branson and Gabriel.
Desmond
Tutu serves as the chair of The Elders-who will use their collective
skills to catalyze peaceful resolutions to long-standing conflicts,
articulate new approaches to global issues that are causing or may cause
immense human suffering, and share wisdom by helping to connect voices
all over the world. They will work together over the next several
months to carefully consider which specific issues they will approach.
In
September 2007, Richard Branson chaired the jury of the first Picnic
Green Challenge, a ?500.000 award for best new green initiative, set up
by the Dutch Postcode Lottery and the (
PICNIC Network) of creative professionals. The first Green Challenge was won by (
Qurrent) with the Qbox.
In
March 2008, Richard Branson hosted an environmental gathering at his
private island, Necker Island, in the Caribbean with several prominent
entrepreneurs, celebrities, and world leaders. They discussed global
warming-related problems facing the world, hoping that this meeting will
be a precursor to many more future discussions regarding similar
problems. Former British Prime Minister Tony Blair, Wikipedia co-founder
Jimmy Wales, and Larry Page of Google were in attendance.
World record attempts
Richard Branson made several world record-breaking attempts after
1985, when in the spirit of the Blue Riband he attempted the fastest
Atlantic Ocean crossing. His first attempt in the 'Virgin Atlantic
Challenger' led to the boat capsizing in British waters and a rescue by
RAF helicopter, which received wide media coverage. Some newspapers
called for Branson to reimburse the government for the rescue cost. In
1986, in his 'Virgin Atlantic Challenger II', with sailing expert Daniel
McCarthy, he beat the record by two hours. A year later his hot air
balloon 'Virgin Atlantic Flyer' crossed the Atlantic. This was the
largest balloon at 2.3 million cubic feet (65,000 m³), and the first
hot-air balloon crossing the Atlantic. It reached 130 miles per hour
(209 km/h).
In January 1991, Branson crossed the Pacific from
Japan to Arctic Canada, , in a balloon of 2.6 million cubic feet
(74,000 m³). This broke the record, with a speed of 245 miles per hour.
Between
1995 and 1998 Branson, Per Lindstrand and Steve Fossett made attempts
to circumnavigate the globe by balloon. In late 1998 they made a
record-breaking flight from Morocco to Hawaii but were unable to
complete a global flight before Bertrand Piccard and Brian Jones in
"Breitling Orbiter", March 1999.
In March 2004, Branson set a
record by travelling from Dover to Calais in a Gibbs Aquada, in 1 hour,
40 minutes, and 6 seconds, the fastest crossing of the English Channel
in an amphibious vehicle. The previous record of six hours was set by
two Frenchmen.
In September 2008 Branson and his children will
attempt a Eastbound record crossing of the Atlantic ocean under sail in
his 99m sloop "Virgin Money".
Television, film, and print
Branson has guest starred, usually playing himself, on several
television shows, including "Friends", "Baywatch", "Birds of a Feather",
"Only Fools and Horses", "The Day Today", a special episode of the
comedy "Goodness Gracious Me" and Tripping Over. Branson made several
appearances during the nineties on the BBC Saturday morning show "Live
& Kicking", where he was referred to as 'the pickle man' by comedy
act Trev and Simon (in reference to Branston Pickle). Branson also
appears in a cameo early in XTC's 'Generals and Majors' video.
He
was also the star of a reality television show on Fox called "The Rebel
Billionaire" (2004), in which sixteen contestants were tested for their
entrepreneurship and sense of adventure. It did not succeed as a rival
show to Donald Trump's The Apprentice and only lasted one season.
His
high public profile often leaves him open as a figure of satire-the
2000 AD series "Zenith" features a parody of Branson as a super villain,
as the comic's publisher and favoured distributor and the Virgin group
were in competition at the time. He is also caricatured in "The
Simpsons" episode 'Monty Can't Buy Me Love' as the tycoon Arthur
Fortune, and as the ballooning megalomaniac Richard Chutney (a pun on
Branson, as in Branston Pickle) in "Believe Nothing". The character
Grandson Richard 39 in Terry Pratchett's Wings is modeled on Branson.
He
has a cameo appearance in several films: "Around the World in 80 Days
(2004)", where he played a hot-air balloon operator; "Superman Returns",
where he was credited as a 'Shuttle Engineer' and appeared alongside
his son, Sam, with a Virgin Galactic-style commercial suborbital shuttle
at the centre of his storyline. He also has a cameo in the James Bond
film "Casino Royale". Here, he is seen as a passenger going through
Miami Airport security check-in and being frisked - several Virgin
Atlantic planes appear soon after.
He makes a number of brief and
disjointed appearances in the cult classic documentary "Derek and Clive
Get the Horn" which follows the exploits of Peter Cook and Dudley Moore
recording their last comedy album. Branson and his mother were also
featured in the documentary film, "Lemonade Stories." In early 2006 on
"Rove Live", Rove McManus and Sir Richard pushed each other into a
swimming pool fully clothed live on TV during a 'Live at your house'
episode.
Branson is a "Star Trek" fan and named his new spaceship
VSS "Enterprise" in honour of the famous "Star Trek" ships, and in 2006,
offered actor William Shatner a free ride on the inaugural space launch
of Virgin Galactic.
In August 2007, Branson announced on "The
Colbert Report" that he had named a new aircraft Air Colbert. He later
doused political satirist and talk show host Stephen Colbert with water
from his mug. Branson subsequently took a retaliatory splash from
Colbert. The interview quickly ended, with both laughing as shown on the
episode aired on Comedy Central on August 22, 2007. The interview was
promoted on "The Report" as the "Colbert-Branson Interview Trainwreck".
Branson then made a cameo appearance on The Soup playing an intern
working under Joel McHale who had been warned against getting into water
fights with Stephen Colbert, and being subsequently fired.
In
March 2008 he made a small appearance in a budget Bollywood action film
alongside Neha Dhupia. Branson caused a stir in the Indian media as he
turned Dhupia upside down on a stage.
Politics
Branson was knighted in 1999 for 'services to entrepreneurship' and
presented as a millennium icon. In the 1980s, he was briefly given the
post of 'litter tsar' by Margaret Thatcher-charged with 'keeping Britain
tidy'. He was again seen as close to the government when the Labour
Party came to power in 1997. In 2005 he declared that there were only
negligible differences between the two main parties on economic matters.
He has frequently been mentioned as a candidate for Mayor of London,
and polls have suggested he would be a viable candidate, though he has
yet to express interest.
Business practices
Branson's business empire is owned by a complicated series of
offshore trusts and companies. "The Sunday Times" stated that his wealth
is calculated at £3.065 billion; if he were to retire to his Caribbean
island and liquidate all of this he would pay relatively little in tax.
When
Virgin Mobile launched its service in Canada on 1 March, 2005, the use
of 'naughty nurses' in its advertising triggered 'The Registered Nurses
Association of Ontario' to demand an apology from Branson and an
immediate stop to the campaign, and called on members to boycott Virgin
Mobile. Virgin Mobile spokeswoman Paula Lash said the company never
intended to offend anyone, but was not about to pull the advertising.
When
Virgin Mobile included 'super hot holiday' wrapping paper with the
December 2005 issue of youth magazine Vice, as part of the Hot Box
promotion, the wrapping paper contained illustrated holiday angels,
where the male angel is touching the female's breast, while the female
angel has her hand on the male's genitals. Famous Players stopped its
partnership deals with Virgin Mobile after a complaint.
In 1988,
Branson wanted to buy Virgin Music back for the same amount of money,
per share, that he had sold it for, valuing the company at £248m. The
shareholders agreed, although they were unaware that Branson had already
agreed to sell the same shares to Pony Canyon, a Japanese media
company, for £377m. The incident was revealed in 2000 when Branson was
on the verge of winning the franchise for the National Lottery from
Camelot Group.
Honours
In 1993, Branson was awarded an honorary degree of Doctor of Technology from Loughborough University.
He was knighted in 1999 for his 'services to entrepreneurship'.
Branson
is the patron of several charities, including the International Rescue
Corps and Prisoners Abroad, a registered charity which supports Britons
who are detained outside of the UK.
Sir Richard appears at No. 85
on the 2002 list of '100 Greatest Britons' (sponsored by the BBC and
voted for by the public). Sir Richard also ranks No. 86 on Channel 4's
2003 list of '100 Worst Britons'. Sir Richard was also ranked in 2007's
"Time Magazine" 'Top 100 Most Influential People in the World'.
On
7 December, 2007, United Nations Secretary General Ban Ki Moon
presented Branson with the United Nations Correspondents Association
Citizen of the World Award for his support for environmental and
humanitarian causes.
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