Basketball Hall-of-Famer Earvin "Magic" Johnson has sold his 50% stake in more than 100 urban Starbucks (SBUX) stores back to the company, Starbucks said Thursday. The news comes only three days after Johnson sold his minority stake in the Los Angeles Lakers to Dr. Patrick Soon-Shiong, a billionaire surgeon who's been a season-ticket holder for 25 years.

Through Magic Johnson Enterprises's Johnson Development Corp., Johnson in 1998 partnered with Starbucks in a joint venture, called Urban Coffee Opportunities, to open stores in underserved neighborhoods in Los Angeles, New York and Washington D.C.

"Together we opened several successful locations, including our Harlem store, which led the redevelopment of that now vibrant neighborhood," Starbucks CEO Howard Schultz said in a statement Thursday. "Thanks to this partnership, Starbucks has deepened our commitment to community development in urban areas and plans additional programs to sustain that commitment."

The company didn't disclose those stores' financials. But the Los Angeles Times, which got the news from an anonymous source Tuesday, put the combined value of Johnson's stake in Starbucks and the Lakers at about $100 million. The unnamed source called the sales "a good business decision."

Neither Starbucks nor the Lakers indicated why Johnson made the divestments. Since 1991, Johnson's extensive real estate investments have included shopping centers and movie theaters. In May, the Washington Hilton completed a $150 million renovation funded partly by Canyon-Johnson Urban Funds, in which Johnson is a partner.


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mlebman

My comment is about the Federal Reserves policy of very low artificial interest rates in order to help the economy and encourage job creation. My opinion is that this policy does the exact opposite. If you want people to lend money, you must provide a reasonable monetary compensation. If people don't lend, and banks are not required to lend, capital is not available to create an economy and jobs.This is so elementary that economists who work for the government can't see it because of all the monetary theories in the way!!!

October 22 2010 at 2:27 PM Report abuse rate up rate down Reply
hnelson468

Only reason for him to be selling at a time like this is he is desperate for cash, as in almost broke

October 22 2010 at 10:11 AM Report abuse rate up rate down Reply
kv37

Maxwell House ain't no good anymore, they changed the formula.

October 22 2010 at 4:39 AM Report abuse rate up rate down Reply
Jeb

Didn't know about the basketball connection until just now. I'm going back to Maxwell House.

October 21 2010 at 9:31 PM Report abuse rate up rate down Reply