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Diddy’s $185M Purchase of Cannabis Company Collapses After Failed Agreement

August 5, 2023
in Entertainment
Diddy’s $185M Purchase of Cannabis Company Collapses After Failed Agreement
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Diddy fails to purchase cannabis company

Photo Credit: David Gabrić

When shareholders of two cannabis companies failed to come to an agreement on their planned merger, Diddy’s intended $185M investment in the two companies fell through.

Diddy can’t catch a break in the vice industries. Amid his legal battle with spirits giant Diageo, Sean “Diddy” Combs’ intended plan to invest in a pair of cannabis operations for $185 million is no more. 

After shareholders of cannabis companies Cresco Labs and Columbia Care failed to reach an agreement in their proposed merger agreed upon last year, the music and business mogul’s plans to purchase the merged company fell through this week. Cresco Labs is valued at $1 billion, while Columbia Care comes in at $500 million.

“In light of the evolving landscape in the cannabis industry, we believe the decision to terminate the planned transaction is in the long-term interest of Cresco Labs and our shareholders,” said the company’s co-founder and CEO, Charles Bachtell, in a statement. “We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction.”

The deal would have effectively made Diddy the most prominent Black business owner in the cannabis industry, with nine cannabis shops throughout New York, Massachusetts, and Illinois, each with its own production facility.

“My mission has always been to create opportunities for Black entrepreneurs in industries where we’ve traditionally been denied access, and this acquisition provides the immediate scale and impact needed to create a more equitable future in cannabis,” said Diddy in November 2022 when he announced the planned deal. 

“Owning the entire process — from growing and manufacturing to marketing, retail, and wholesale distribution — is a historic win for the culture that will allow us to empower diverse leaders throughout the ecosystem and be bold advocates for inclusion.”

But Diddy’s team tells TMZ that he and his Combs Global empire still have a “vested interest in pursuing opportunities to diversify the cannabis industry” — they just have to find the right company.

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