Sean “Diddy” Combs is making a major play in the cannabis market by agreeing to purchase licensed marijuana operations in three states in a deal valued up to $185 million.
This marks Diddy’s first investment in cannabis, the fastest growing industry in the U.S. If approved by U.S. and state regulators, it will create the largest Black-owned and licensed cannabis company in the world and the country’s first minority-owned and operated, vertically integrated multi-state operator.
As part of the deal, Combs would acquire nine retail stores and three production facilities in New York, Massachusetts, and Illinois from Cresco Labs Inc. and Columbia Care Inc., two of the largest cannabis businesses in the U.S. The assets will allow Combs the ability to grow and manufacture cannabis products and wholesale and distribute those products to licensed dispensaries in major cities like New York City, Boston, and Chicago.
According to The Wall Street Journal, Diddy’s new company would pay $110 million in cash and $45 million in debt financing, along with additional money based on performance milestones.
Combs decided to enter the market to increase Black participation in the cannabis industry. “This is a historic win for the culture and a major step forward for diverse founders around the world!” he said. “My mission has always been to create opportunities for Black entrepreneurs in industries we’ve traditionally been denied access to. This deal opens the door for more minorities and diverse founders in Cannabis, and I’m proud to kick the door down!”
This is the latest addition to Diddy’s growing empire, which also includes DeLeón Tequila and his REVOLT media network, as well as his music catalog and Love Records label. The hip-hop mogul was recently declared a billionaire, becoming the second richest man in hip-hop after JAY-Z.
Diddy, who celebrates his 53rd birthday today, is also putting his money into Twitter. TMZ reports that he invested $10 million as part of Elon Musk’s $44 billion acquisition of the social media platform.