Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Diddy dives into NY cannabis market with acquisition deal worth up to $185M
By
Caroline Lewis
Published Nov 4, 2022
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
Denise Truscello/Getty Images for iHeartRadio
By
Caroline Lewis
Published Nov 4, 2022
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Sean “Diddy” Combs is jumping into New York’s cannabis industry with a $185 million deal — a strong foothold that would also create the largest Black-owned cannabis company in the U.S.
Combs is planning to purchase marijuana production facilities and retail shops in multiple states, including New York, from cannabis giants Cresco and Columbia Care, according to an announcement Cresco sent out Friday.
The two firms are shedding assets in order to comply with regulatory requirements as they finalize their own $2 billion acquisition deal. States including New York have limits on the number of dispensaries and production facilities license holders can operate. They first announced in March that Cresco, headquartered in Chicago, would acquire New York-based Columbia Care, creating one of the biggest cannabis companies in the U.S.
In a statement, Combs said he was eager to help diversify the industry. Although states including New York have created equity programs, Black people still own fewer than 2% of legal cannabis companies, according to a recent analysis from the Minority Cannabis Business Association.
“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 Combs, chairman and CEO of Combs Enterprises, in a statement about the deal.
Pending regulatory approval, Combs will purchase dispensaries in Brooklyn, Manhattan, Rochester and New Hartford — along with a Rochester production facility. He will also take over retail shops and production sites in Massachusetts and Illinois, giving him access to the Boston and Chicago markets. Combs Enterprises has agreed to pay $155 million in cash and seller notes upon closing the transaction, with the remainder due after the company achieves certain milestones, according to the announcement.
New York has been seeking to prioritize small business owners who have been directly affected by past prohibition as it sets up its recreational cannabis market. But 10 large operators already have medical marijuana licenses in the state, including Cresco and Columbia Care.
Recreational legalization created a flurry of investment activity around these medical license holders as they prepared to transition into the broader market – although a major acquisition deal involving two companies, MedMen and Ascend, fell apart earlier this year and another is threatening to crumble.
Aside from some “microbusinesses” that have yet to be licensed, these large companies will be the only ones allowed to touch every aspect of New York’s recreational supply chain — from cultivation to manufacturing to distribution. That’s because they were established under the 2014 Compassionate Care Act, which set up the medical marijuana industry, rather than the 2021 law establishing the adult-use industry.
“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,” Combs said.
Tagged
cannabis
Sean Combs
Health and Science
marijuana
new york
Caroline Lewis
Caroline Lewis is on the health care beat for WNYC and Gothamist. She has covered COVID, a nurses' strike, the overdose crisis and New York’s marijuana legalization effort, and spent a year investigating patients' medical bills. She always wants to hear about how everyday New Yorkers experience the health system. Got a tip? Email [email protected].
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Early Addition: Is Harry running?
Because Harry Styles' Madison Square Garden residency is over in time for the marathon, here are your early links: Connecticut Gov. Ned Lamont going for a historic third term, real estate brokers posing in their listing photos, watches on ankles and more.
By
James Ramsay
Published Oct 30, 2026 at 10:00 a.m. ET
NYC Council takes key step toward Mamdani's promised Department of Community Safety
Lawmakers on Friday debate a bill that would create the new department.
By
Ben Feuerherd
News
NYC Council takes key step toward Mamdani's promised Department of Community Safety
Lawmakers on Friday debate a bill that would create the new department.
By
Ben Feuerherd
NY progressives have found a way to vote for Hochul, with an asterisk
By
Walter Wuthmann
Can you eat the mushrooms growing out of your bathroom ceiling?
By
Rosemary Misdary
Bronx community hosts vigil for boy killed in e-bike fire
By
Carol Chen
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .