How much did Howard Schultz pay to acquire Starbucks in 1987?

Howard Schultz paid $3.8 million to acquire Starbucks in 1987.

Schultz had joined Starbucks after being impressed by its coffee business and later left to establish the Il Giornale coffeehouse concept. When Starbucks’ original owners decided to sell, Schultz raised money from investors and purchased the company, including its name and assets, for $3.8 million.

After the acquisition, Schultz combined Starbucks with Il Giornale and began expanding the company’s café model. Starbucks retained its established name, while Schultz introduced a broader vision based on Italian coffeehouse culture, espresso beverages, and café experiences. The transaction marked the beginning of Starbucks’ transformation from a small Seattle retailer into an international chain.

This amount is often confused with later Starbucks financing, public-market valuations, or the cost of individual store expansion. The $3.8 million figure specifically refers to Schultz’s 1987 acquisition of the Starbucks business, not the company’s later market value.