Jeff Bezos Is Selling $1 billion Amazon (NASDAQ:AMZN) Stock to Fund His Space Company

49
Blue Origin

There is a lot of space out there, and a tremendous potential to make serious money from it. Billionaire Jeff Bezos, the CEO of Amazon (NASDAQ:AMZN) has said he is selling $1 billion worth of Amazon stock every year to fund his rocket company, Blue Origin. Bezos revealed this while speaking at the 33rd U.S. Space Symposium, which was held at Colorado Springs recently. With this kind of investment, Blue Origin will be able to compete long-term with SpaceX of Elon Musk.

Amazon presently has a valuation of $240 billion, but it could soon be a trillion billion worth business, going by the pace at which it is growing. Jeff Bezos himself has a net worth of $78 billion. He is presently the second richest person in the world.

Blue Origin Will Take Tourists to Space Soon

Through his space business Blue Origin, Bezos wants to develop a rocket that will be able to lift satellites initially, but eventually, he wants to carry people into orbit. Space tourism is expected to pick up soon and be worth several billions of dollars. Virgin Galactic, for instance, has already sold 700 tickets that were each priced between $200,000 and $250,000. They have accepted more than $80 million in deposits.

The plan is to sell tickets and take passengers to the edge of space so that they can experience weightlessness and see the Earth from space. SpaceX, on the other hand, is presently developing their Dragon space capsule that will send astronauts to the International Space Station on its Falcon 9 rocket. Musk also has plans of sending people around the Moon using the more powerful Falcon Heavy rocket.

Jeff Bezos said, “My business model right now for Blue Origin is that I sell about $1 billion a year of Amazon stock and I use it to invest in Blue Origin. It’s very important that Blue Origin stand on its own feet and be a profitable, sustainable enterprise. That’s how real progress gets made. We’re going to go through the test program, and we’ll put humans on it when we’re happy”, he added.

Just 1 Hour of Training is Needed

Bezos of Amazon (NASDAQ:AMZN) says his space tourists will need only an hour of training before the flight. Blue Origin too, will begin with 11-minute rides for space tourists from next year. However, there are no long-term plans for ticket sales yet.