Magic Johnson Adds Life Insurance To His Business Empire
June 25, 2015 by USA Today
Retired basketball superstar Earvin “Magic” Johnson has added a $14.5 billion life insurance company to his growing business and sports empire, Magic Johnson Enterprises.
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 roughly 60% 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:
** A stake in Major League Baseball’s Los Angeles Dodgers.
** 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 WNBA’s Los Angeles Sparks.
** 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 Guggeheim continues to own a stake in EquiTrust. Miller declined comment.
In announcing the EquiTrust investment, Johnson gave a shout out to Mark Walter, Guggeheim co-founder and CEO, calling him “an amazing business partner, friend and true community supporter!” on Twitter. Johnson, who played guard for the NBA’s Los Angeles Lakers, has done business with Guggeheim before, including joining the investment firm in the record $2 billion deal to buy the Dodgers in 2012.
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.
