Magic Johnson scores firm for empire
NBA legend buys stake in $14.5B insurance company
Retired basketball superstar Earvin (Magic) Johnson just added a $14.5 billion (U.S.) life insurance company to his growing business and sports empire, Magic Johnson Enterprises (MJE).
On Tuesday, MJE, which Johnson founded in 1987, said it completed its planned acquisition for a “majority, controlling interest” in EquiTrust Life Insurance Company, which manages $14.5 billion in annuities, life insurance and other financial products.
MJE acquired a roughly 60 per cent stake in EquiTrust from Guggenheim Partners, the New York-based financial giant that bought EquiTrust in 2011. Financial terms weren’t disclosed. MJE announced plans to buy a stake in EquiTrust in January 2014. Paul Miller, the life insurance company’s chief operating officer, attributed the delay in closing the transaction to “legal and regulatory” issues.
Over the years, MJE has amassed a small empire of investments in sports teams, entertainment assets, restaurants and other businesses. MJE’s growing portfolio includes:
Astake in the Los Angeles Dodgers baseball team
An investment in Hero Ventures, the company behind The Marvel Experience, a theme-park attraction featuring Marvel’s famous heroes and villains
A stake in the Los Angeles Sparks Women’s National Basketball Association team.
The Comcast channel ASPiRE, which celebrates the African-American experience.
An investment in Vibe Holdings, a New York-based magazine and television company that focuses on the urban market.
Under MJE’s ownership, Guggenheim will continue to manage money for EquiTrust, MJE said. It’s unclear whether Guggenheim contin- ues to own a stake in EquiTrust. Miller declined to comment.
In announcing the EquiTrust investment on Tuesday, Johnson gave a shout-out to Mark Walter, Guggenheim co-founder and CEO, calling him “an amazing business partner, friend and true community supporter!” on Twitter.
Johnson, who played point guard for the Los Angeles Lakers, has done business with Guggenheim before, including joining the investment firm in the record $2-billion deal to buy the Los Angeles Dodgers baseball team in 2012.
Earlier this month, Johnson announced he will join the board of Square, the payments company founded by Twitter co-founder Jack Dorsey.
Dorsey was recently appointed interim CEO of Twitter amid shareholder grumblings over outgoing CEO Dick Costolo.