Diddy’s plans to create the largest Black-owned cannabis company in the world have hit a major roadblock as the merger between Cresco Labs Inc. and Columbia Care Inc. fell through. Last November, the music mogul and Bad Boy Records boss had announced his intention to invest $185 million into cannabis operations spearheaded by the two companies. The deal was aimed at obtaining nine Black-operated retail stores in New York, Massachusetts, and Illinois.
Regrettably, the highly-anticipated merger between Cresco Labs Inc. and Columbia Care Inc. was terminated on July 28, effectively halting Diddy’s ambitious venture. The combined value of the two companies was a staggering $1 billion and $500 million, respectively. Diddy’s investment included a cash payment of $110 million and an additional $45 million in debt financing.
Diddy was undeterred by the hefty price tag, as his primary objective was to create opportunities for Black entrepreneurs in industries where access had traditionally been denied. In a statement, he expressed his vision of owning the entire process from growing and manufacturing to marketing, retail, and wholesale distribution, with the ultimate goal of promoting a more equitable future in the cannabis industry and empowering diverse leaders.
Despite the failed merger, Cresco Labs and Columbia Care remain determined to focus on enhancing their competitiveness and driving efficiencies to capitalize on potential growth opportunities within the evolving cannabis landscape.
This setback comes amidst a tense legal dispute between Diddy and spirits company Diageo, where he accused the company of racial discrimination. The legal battle has added further complexities to Diddy’s business endeavors, but he continues to advocate for his rights and the pursuit of justice.