Diddy To Buy Cannabis Operations In 3 States In Multimillion-Dollar Deal

Sean “Diddy” Combs is making a historic move into the cannabis industry. 

On Friday, November 4, the music-media mogul announced his plans to buy operations from cannabis wholesaler Cresco Labs, Inc. and manufacturer Columbia Care Inc. for up to $185 million. According to the Wall Street Journal, Diddy’s company would pay $110 million in cash and $45 million in debt financing. The rest of the amount payable post-closing upon achievement of specific short-term, and market-based milestones. If approved by U.S. and state regulators in New York, Massachusetts, and Illinois, Diddy would own the largest Black-owned cannabis company in the country.

“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,” Diddy said in a press release. “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.” 

Diddy's plan is to operate the new cannabis business in order to increase African-American participation and success in the cannabis industry. His acquisition would include nine retail stores and three production facilities in New York, Massachusetts and Illinois. The billionaire rap star began talks to partner with Cresco back in 2018 but no deal came from those talks at the time.

Diddy’s move into the cannabis industry occurred a year after JAY-Z made a similar move by establishing his own cannabis brand, Monogram.