Buffett sells minority stake in Margaritaville

From ColumbusCEO.com: “Raine Takes Stake in Jimmy Buffett’s Margaritaville

In its four years of existence, the Raine Group has kept plenty busy with media and telecommunications deals. But its latest investment will tie the firm to a company best known for promoting lazy, boozy afternoons on the beach.

The firm disclosed in a letter to investors on Sunday night that it had taken a minority stake in Margaritaville, the restaurant operator and brand licensing company named after the hit song by Jimmy Buffett.

According to the letter, Buffett’s company generates more than $1 billion in annual gross sales.

Now it has bought a stake in Margaritaville, which runs restaurants in nearly two dozen resorts where one would reasonably find tourists kicking back with tequila, and which licenses out the name its majority owner made famous.

The company has had a few setbacks, including the recent announcement that it will close its casino and hotel in Biloxi, Mississippi. But Raine told investors that it believes its latest acquisition has “an incredibly strong built-in audience” and has room to grow.

Comments

20 thoughts on “Buffett sells minority stake in Margaritaville

  1. I remember when Jimmy used to be a musician. One of my greatest musical heroes has become what he used to mock… a canned Vegas act. How much money is enough Jimmy? You “jumped the shark” when you let Fingers go. Refuse to pay ridiculously high prices for the same show every year to see the exact same show. The Dead never played the same two nights in a row. Sell out!

  2. I am in agreement with how much is too much and JB has recently taken advantage of his true followers. It seems like the act is down home, cozy and friendly but in reality it is expensive, repetitive and lacks the creative genius that used to exist. How much is too much and what is done to help others should be a concern of a man who has accumulated the amount that he has. The song makes sense now, he is wasting away in what was Margaritaville. It was fun while it lasted.

  3. Maybe Jimmy needs to “Get back to the Island”. Stop touring for a while and get back in touch with reality. For the last 2 years the shows in Mansfield Ma. haven’t been like they use to be. It felt like he was in a rush to get them over with. The interaction with the audience just wasn’t there. I have been a :Parrothead since 1970 and will be one until I find that “One Particular Harbor. I want the original Jimmy back. He use to be wicked awesome.

  4. Hello people, This looks like Jimmy’s way of cashing in on his 401k. He has said publicity that he wants to tour less and do the things that he wants to do finally. If we had been lucky enough to come up with this brilliant song years ago, wouldn’t we be doing the same. Thank u Jimmy

  5. I see JB ever year. In fact I was lucky enough to see him twice this year! Texas loves JB and his shows are always awesome. Keep coming to Texas and making money!

  6. Jimmy Buffett’s shows are all the same. There comes a time in your life when you have to say that it’s time to move on, both for him and for his fans. He has made his money a million times over. His shows have become boring in that he appears to be bored with having to perform. It is probably a result of over touring. Mr Buffett has done great shows in the past, but how many times can you hear the same songs? Also, he doesn’t appear to remember where he came from. He came from the same middle class as may of his fans, yet doesn’t appear to care to “throw a bone,” to the fans who made him into a billionare. Ticket prices are wildly out of control for what is old material. I guess if people will pay it, he’ll keep raking it in, as for me, I can skip the shows. The tailgate is much better than the shows.

  7. Oh come on people…..the guy is 67 years old time for him to be slowing down. He still gives a great concert and I really don’t know of anyone else out there who tours where fans can have the fun they have tailgating before a concert….Sell out, I don’t think so, just a smart man!
    I grew up listening to Jimmy and hope he continues to tour…. all the other merchandise whether it be a restaurant, clothing, casino or resort are insignificant. As far concerts being expensive, have you been to the grocery store lately? Things change and you either accept it and get on with it or you gripe and be negative..not a great attribute.

  8. Geez with “fans” like these who needs enemies? Thanks for all of the still-great shows Jimmy. I never tire of them. The escape-ism is awesome.

  9. Ok, enough of the concert rag…he sold his major share in “Margaritaville”. Doesn’t he deserve to retire like the rest of us? My question is who will take over? He has started an attitude for having fun with no worries and a easy place to go to have it. I just hope it continues, because we need them these days. I’m a KNWPHC member and will be til I forget where I came from or going too! Phins Up!

  10. I too have had it, have for several years now. Yes I have my share of concerts but they are the same. Here in Atl a peer went and he said, same stuff different order but the tailgating was the show… No tailgating here this year.
    So point being, he is the true capitalist eh vents about and that is cool but he lost who he was and takes advantage. For instance, in election years “too busy” to hit up his fan base at meeting of the minds but made time that same week to perform and campaign for Obama. Yep, he lost it and me. I still love and listen to the old classics, but will never buy new remixes, or a coffee cup from m’ville that is made in China.
    Livin’ on sponge cake,
    Ron in atl.

  11. Jimmy Buffett will forever be one of my biggest hero’s. Jimmy is the perfect example of hard work & creativity. Jimmy Buffett is an irreplaceable American Icon. He is the singer, song writer, poet, & story teller in all of us. Having grown up in Idaho & Utah all my life, my world view was very limited. Jimmy helped me escape to that one particular harbor he opened my eyes to see the beauty & the magic that surrounds me every day. I would personally like to thank you Jimmy Buffett. Thank you for sharing your music, your time & your talent with all of us. I will be a pirate that looks at 40 this year I am so grateful that I discovered you 10yrs ago. I am so grateful that I was able to go see you in Vegas ”4 times” & celebrate the love of life & your music with my fellow Parrotheads. I am growing older but I will never grow up thanks to you. I am a proud Parrothead & I will be until the day when my hair’s full gray and I finally disappear. Thank you Jimmy!!

  12. SOME folks need to get a grip I can see.
    A minority interest in a company is an equity position that does have sufficient votes to control the operations and finances of the the company’s business. A minority interest is usually less than 50% of the outstanding voting shares.

    Unless James William and his group have given them control by agreement they are basically not a factor in running the business they just absorb part of the equity and tax burden.

    I have been to almost every Buffett location in the USA and I see no upturn in pricing that is not reflected by the present day economic environment.

    As far as Jimmy Concerts go, The tail gate is the dealio no matter what anyone says. Finz UP from a member of the POTRPHC in Louisiana

  13. I stopped going to concerts and have not bought a cd since License to Chill. I also tuned in to the first margaritaville TV show but was bored out of my mind. I am a 35 year old who no longer funds the Jimmy money machine. It was a hell of a ride Jimbo. Hell of a ride.

  14. First of all let’s me say THANKS to Jimmy Buffett for 50 years of just BIG TIME FUN and now a message about business’s to all you that got stuff to say about his business’s get a life I’m 100% sure JB does not read or even care you any of us say or care about his business’s or his life THANKS AGAIN JB YOUR WILMINGTON NC PARROTHEAD FAMILY

  15. Buffett does fewer shows than most big acts. He rarely plays consecutive days, which limits his exposure. He’s closer to 70 than 60 and his concerts are always sold out. If you think he’s not worth your entertainment dollar, let someone else go.

  16. I’ve been following since the mid-70s when I first saw Jimmy as a back up act for the Eagles. I went to two shows this year, and was somewhat disturbed to find the show notably shorter in time and number of songs.

    But I’ll keep going. He is a link to my past, when he was the young foul-mouthed singer who never really hit it big, but had a “cult” following.

    I’d be surprised if he truly retires and stops touring. I think the tours are what drives many, many people to the many businesses he has. No more live shows and I can see all the income slowing to a trickle.

  17. He is starting to cash in and he deserves every single penny. Plus, he is going to be touring less (he said as much last week) so he’ll be less relevant. He probably sees the day 10 or 15 years from now when no one is going to want to eat a “Cheeseburger in Paradise” or any other stupid menu item in a tourist trap restaurant related to an over-the-hill singer. When he is done promoting himself through the same act year after year, the business side will slow dramatically. He knows it, so it makes complete sense to take on a limited partner. I wouldn’t be surprised if other partners are announced in the coming years.

  18. I was sad to hear about the closing of the Biloxi restaurant and casino. We visited there on the afternoon of July 20, 2014 for the first time and we were impressed with the facility…we had a wonderful lunch …the fried green tomatoes were the best I have ever had…I would have gone back just for that dish!

    We did notice it was not crowded. ..too bad…the place looked like it had great potential. ..the lack of customers probably had to do with the bay location…. a venue overlooking the beach might have done better.

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