Magic Johnson Is Officially a Billionaire — Here's How the Lakers Legend Made His MoneyForbes estimates that Johnson's net worth is now an estimated $1.2 billion.

Basketball legend Earvin "Magic" Johnson is officially a billionaire.

Johnson, 64, is now worth an estimated $1.2 billion thanks to a lucrative career in the professional sports arena, including stakes in multiple sports teams, perForbes.

The retired athlete is a minority stakeowner in the Washington Commanders (NFL), the Los Angeles Sparks (WNBA), Los Angeles Dodgers (MLB), and the LAFC (MLS).

Johnson played for theLakers for 12 seasons before he famously retired in 1991 after publicly disclosing that he had been diagnosed with HIV. He then returned to the Lakers for one more season in 1995 and then retired a final time following that season in 1996. He has been a long-time activist and advocate for the prevention of the disease.

^{Magic Johnson attends The Elizabeth Taylor Ball to End AIDS at The Beverly Hills Hotel (Getty Images)}

Roughly $40 million of Johnson's net worth comes from playing in the NBA, but the majority of his earnings come from his 2015 purchase of EquiTrust, a life insurance company that he currently owns a 60% stake in.

Related:5 Lessons on Success From Magic Johnson

Forbesreported that the company is now estimated to be worth $26 billion and generates $2.6 billion in annual revenue.

Johnson has also made other lucrative investments and generated business through his investment company Magic Johnson Enterprises, including a slew of Loew's movie theaters and Starbucks cafes that he's opened in predominantly black neighborhoods, as well as investments in Burger King and 24 Hour Fitness locations.

"Retail has made a mistake in thinking they couldn't make money in the Black community," Johnson told theNew York Timesin 2021 about his business endeavors. "And sure enough, we proved that wrong with the Magic Johnson Theatres. We proved it wrong with the Starbucks. That's why you see big retailers going into urban America more now than ever because they know they can get a return on investment."

Related:Magic Johnson: The Businessman Behind the Basketball Legend

Johnson is now the fourth professional athlete to join the billionaire club, alongside Tiger Woods, LeBron James, and Michael Jordan.