Diddy's Plan To Launch Largest Black-Owned Cannabis Company Falls Through

Diddy has lost his bid to launch the biggest Black-owned cannabis company in the world as a result of Cresco Labs Inc. and Columbia Care Inc. abandoning their merger. Diddy announced his plan to invest $185 million into cannabis operations that would've been handled by the two companies, last year. They're valued at $1 billion and $500 million, respectively.

Charles Bachtell, CEO and co-founder of Cresco Labs, addressed the decision in a statement cited by Benzinga. “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," he said. "We want to express our sincere gratitude to Columbia Care for their valuable collaboration and dedication during this transaction."

Diddy At The Academy Awards

HOLLYWOOD, CALIFORNIA - MARCH 27: Sean 'Diddy' Combs speaks onstage during the 94th Annual Academy Awards at Dolby Theatre on March 27, 2022 in Hollywood, California. (Photo by Neilson Barnard/Getty Images)

Diddy announced the deal back in November 2022. “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,” he said in a statement at the time. “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.”

In addition to the failed move with Cresco Labs Inc. and Columbia Care Inc., Diddy is also in the midst of a legal dispute with the spirits company, Diageo. He accused the company of racial discrimination and says they marketed their DeLeón brand as an “urban” and “Black” tequila brand. The battle is ongoing.

Despite the latest failed business move, Diddy's net worth is still dominant. In October of last year, he became a billionaire, just days after Kanye West lost his status among the nine-figure elite.

[Via]