The former President and First Lady looked unconcerned and relaxed in shorts and hats as they walked with the Virgin billionaire in the British Virgin Islands.
Sir Richard, a friend of the former first couple, is hosting the pair on Necker Island – his private Carribean bolthole which he rents out for in excess of £60,000.
They are on day eight of their two-week break holiday and travelled from a long weekend in Palm Springs to the islands on Mr Branson’s private jet.
Mr Obama, who wore glasses and a backwards baseball cap, was officially replaced by Mr Trump on January 20.
Barack and Michelle Obama enjoy holiday with Richard Branson
Both Michelle and I are interested in creating platforms
The couple can be seen smiling and waving to camera in a YouTube video, wearing sunglasses, hats, shorts and sandals. Sir Richard Branson also turns to wave at the camera as they walk across sand to a helicopter nearby.
Responding to a man from behind the camera, who told the couple to have a nice holiday, Barack Obama said: “See ya. Thank you so much. Thank you.”
The Virgin founder and billionaire entrepreneur owns 74-acre Necker Island as well as the bigger 125-acre Moskito Island, two miles away, which includes a recreational area plus the three villa, 11 bedroom Branson Estate.
The Obamas have been staying on Necker Island
The Obamas have been staying on Necker Island, where a hundred staff serve families who pay £64,000 per night for the luxurious stay.
The couple were also spotted enjoying lunch with the business magnate, who previously wrote a scathing account of his meeting with Mr Trump.
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Mr Obama, 55, has spoken out against his successor Donald Trump’s controversial immigration ban.
The new President’s controversial temporary executive order to halt refugees from seven Muslim-majority countries has seen thousands of protestors take to the street across the world.
Mr Obama’s spokesman said he “fundamentally disagreed” with the move.
The former first couple now want to play a role in helping support a future President of the United States.
Mr Obama told the New Yorker: “I think both Michelle and I are interested in creating platforms that train, empower, network, boost the next generation of leadership."