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Branson's balloon ride
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December 29, 1997: 5:07 p.m. ET
British entrepreneur is in the spotlight again, but not for business reasons
From Correspondent Charles Hodson
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LONDON (CNNfn) - Richard Branson runs more than 200 companies, with combined sales estimated at $5 billion a year. The British entrepreneur is best known for his success in the music and airline industries, but lately he's been in the spotlight for his ill-fated attempt to travel around the world in a hot-air balloon.
Branson owns many things, but he doesn't own the wind. Early in December 1997 in Morocco, a gust uprooted his hot-air balloon and deflated his plans to become the first man to fly one around the world.
Once before, the wind nearly dashed him and his balloon crew to a watery grave in the icy Irish Sea.
Branson, the adventurous owner of Virgin Atlantic Airways, once was asked how to become a millionaire. "There's really nothing to it," he said. "Start as a billionaire and buy an airline!"
Branson started early, but by age 15 he was still far from the airline business.
"I was interested in being an editor and running a magazine. But I soon realized in order for me to be an editor I had to be a publisher, too," he said. "I had to worry about the printing and the paper manufacturing and the advertising . And so I had to become a bit entrepreneurial in order to make sure that the magazine survived."
With no financial backing, Branson hit on the idea of selling records by mail to support his magazine, called Student. The magazine failed but the mail order business picked up.
Then, in the early '70s, he discovered a tune "real" record producers had rejected -- "Tubular Bells," by Mike Oldfield. The conventional wisdom said it would never work because it had no lyrics.(WAV 55K) or (AIFF 55K)
When it topped the charts in 1973, "Tubular Bells" became the backbone of Virgin Records. Branson realized his instincts would not steer him wrong.
For years Virgin Records produced hit after hit with big name artists like Sex Pistols, Boy George, UB40 and Paula Abdul.
In 1992, Branson sold Virgin Records to Thorn EMI for $1 billion.
Branson already had begun his airline, Virgin Atlantic, and he badly needed the cash to stave off fierce competition from the giants of the industry.
"British Airways was doing everything they could do to put Virgin Atlantic out of business -- what's become famous here as the dirty tricks campaign," said Branson. "We felt that we needed the financial muscle to combat them. And I still had a lot to prove at Virgin Atlantic whereas we proved that we could, you know, build and run a successful record company."
"So we sold it for a very good figure at the time, a billion dollars. At the same time I hated doing it. I remember having just told all the staff, running down the street past the Evening Standard headline saying 'Branson sells for a billion' with tears streaming down my face.
A lot of people said at the time that it was absolutely lunatic because the airline industry is like a desert littered with the bones of great entrepreneurs still clutching their brilliant business plans but completely lost along the way.
"If I was a businessman, or saw myself as a businessman, I would have never gone into the airline business," Branson said, adding he doesn't really think of himself as a businessman.
"Well, I'm somebody who is just living...living life, and if I get frustrated by something, then I like to try to put it right," said Branson. "I wanted to create the kind of airline that I'd like to fly. And I felt if we got one plane and we tried to create that kind of airline, then you know maybe if it worked, we'd get a second plane and a third plane. But there was no sort of business rationale behind doing it," he said.
Since then, Virgin has expanded its air services, its hotel interests, international retail businesses, and launched Virgin Cola and Virgin Vodka, with jeans next on the list.
There's a new record label, V2, and Virgin has bought movie theaters and become involved in two British train franchises.
Even though the Virgin brand name is Branson's greatest asset, most of his companies are held in partnership. This seemingly contradictory structure is one of the secrets of his business success -- it limits his downside risk.
A legendary party animal, Branson loves to play tricks and to dress up in exotic costumes. He can hypnotize you if you're not careful, and he once poured ice cubes down Ivana Trump's dress, then turned her upside down to shake them out.
He takes care of his spiritual needs by laughing at death. He's had several near-death experiences that have kept him super-alive when finally back on the ground.
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