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Sean ‘Diddy’ Combs to buy Cresco, Columbia Care marijuana assets for up to $185 million

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Business mogul and rapper Sean “Diddy” Combs agreed to buy marijuana retail and production assets owned by Columbia Care and Cresco Labs for up to $185 million to create what is being called the largest Black-owned cannabis company in the U.S.

The sale of the retail and production facilities in three states also will bring New York-based Columbia Care and Chicago-headquartered Cresco closer to completing their merger. That deal was announced in March and valued at the time at roughly $2 billion.

The transaction must be approved by regulators and receive clearance from federal antitrust regulators.

According to a Friday news release, Combs is buying nine retail stores and three production facilities in Illinois, Massachusetts and New York – a move that will allow the Black entrepreneur to launch “the country’s first minority-owned and operated, vertically integrated multistate operator.”

Requests from MJBizDaily for comment from the mogul’s Combs Enterprises were not returned.

But Combs told The Wall Street Journal he’s disappointed by the lack of minority representation in the cannabis industry and aims to make it more equitable.

“It’s diabolical,” he said.

“How do you lock up communities of people, break down their family structure, their futures, and then legalize it and make sure that those same people don’t get a chance to benefit or resurrect their lives from it?”

MJBizDaily’s new report, “Diversity, Equity & Inclusion in the Cannabis Industry,” shows that 12.1% of executives in the U.S. marijuana industry are racial minorities, down from 13.1% in 2021.

That’s well below the average for all U.S. businesses: According to the U.S. Bureau of Labor Statistics, approximately 20.1% of all CEOs nationwide are racial minorities.

Cresco’s acquisition of Columbia Care is contingent on Cresco’s divestiture of assets to meet regulatory requirements.

Additional asset sales are expected.

The deal with Combs will close if Cresco’s purchase of Columbia Care closes, the release noted.

According to the terms of the Cresco asset sale:

  • Roughly $110 million in cash and $45 million in seller notes will be payable when the transaction closes.
  • The rest of the $185 million will be payable if certain “short-term, objective and market-based milestones” are met.
  • In New York, the transaction includes Columbia Care’s Brooklyn, Manhattan and Rochester stores as well as a Rochester production facility. The deal also includes a New Hartford store owned by Cresco.
  • In Massachusetts, a Cresco Labs Leicester production facility plus stores in Worcester and Leicester are part of the deal. The transaction also includes a Columbia Care store in Greenfield.
  • In Illinois, three assets owned by Columbia Care are included: two stores in Chicago and a production facility in Aurora.

According to the release, the asset sale gives Combs the ability to:

  • Cultivate and manufacture cannabis products.
  • Wholesale and distribute those branded products to licensed retailers in big metropolitan areas including Boston, Chicago and New York City.
  • Operate retail stores in all three states.

The transaction comes as New York prepares to launch its new adult-use marijuana market, which is expected to be one of the largest in the nation.

New York adult-use retailers are projected to generate $1 billion-$1.2 billion in sales next year and growing to $2.2 billion-$2.7 billion by 2026, according to the 2022 MJBiz Factbook.

Illinois already has a robust recreational market, while legalization advocates have long eyed Pennsylvania as ripe for adult use – although efforts to launch such a market have run into opposition from Republican legislators.

The Combs deal has benefits for Cresco, too.

“For Cresco, the transaction is a major step towards closing the Columbia Care acquisition and our leadership position in one of the largest consumer products categories of the future,” Cresco Labs CEO Charles Bachtell said in a statement.

“For an industry in need of greater diversity of leadership and perspective,” he continued, “the substantial presence of a minority-owned operator in some of the most influential markets in the country being led by one of the most prolific and impactful entrepreneurs of our time is momentous… and incredibly exciting.

“We’re thrilled to welcome Sean and his team to the industry.”

No stranger to business

While it’s Combs’ first foray into cannabis, the chair and CEO of New York-based Combs Enterprises last week was declared a billionaire and the second-richest hip-hop artist in North America.

The Combs Enterprises portfolio includes alcohol brands DeLeón tequila and Cîroc vodka, the Oscar-winning Revolt film and television company and clothing brand Sean John.

But Combs, who performed and recorded music under the name Puff Daddy, is probably best known for his oldest business venture, Bad Boy Entertainment.

That division put out some of the most popular hip-hop music in the 1990s by artists such as the Notorious B.I.G., Craig Mack and Ma$e.

Combs isn’t the first Black entertainment mogul to enter the cannabis industry.

Fellow New York native Shawn “Jay-Z” Carter – the wealthiest hip-hop artist in North America, according to ex-Forbes editor Zack O’Malley Greenburg – entered California’s cannabis industry with the Monogram brand, which launched in 2020.

In 2021, as part of a special purpose acquisition company (SPAC) deal involving Left Coast Ventures, a cannabis investment and production company, as well as marijuana brand Caliva, Carter was hired to promote equity and inclusion.

Berner, the founder of cannabis producer and retailer Cookies, is fourth on the list of North America’s richest hip-hop artists.

But Combs could be the first Black owner of a vertically integrated multistate cannabis operator.

“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,” Combs, said in a statement.

“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.”

It’s not yet clear how Combs will navigate the New York market, where he will hold both production and retail licenses.

Last week, state regulators advised that vertically integrated cannabis companies will be banned from participating in adult-use sales, which are scheduled to begin this year.

Cresco acquisition looking good

Shaleen Title, a former Massachusetts cannabis regulator and the founder of drug policy think tank Parabola Center, tweeted that rather than focusing on wealthy acquisitions, it’s more important to note that in order for Cresco Labs to acquire Columbia Care, the two companies would have to divest multiple assets in several states to complete the merger.

Equity analyst Owen Bennett of New York-based investment bank Jefferies Group wrote in a note that that the company is “very bullish” on the merged Cresco-Columbia company now that it has assets in only Florida, Maryland and Ohio to be sold.

With the collapse of two M&A cannabis deals in recent months – Verano Holdings’ acquisition of Goodness Growth and Ascend Wellness’s acquisition of MedMen’s New York assets – there have been doubts that Cresco’s acquisition could also fall through.

“While more assets to be offloaded, today’s announced sales now materially reduce the risk of the deal not completing, in our view,” Bennett wrote.

“What is also very encouraging against the backdrop of the more challenging industry conditions outlined is the fee to be received, more so given the much documented headwinds for New York.”

Bennett wrote that he believes the two companies will get close to the projected $300 million from their respective divestitures.

Derek Dley, a Toronto-based analyst with Canaccord Genuity Group – acting as financial adviser to Columbia Care through the acquisition – warned that it could be lower.

“Following this morning’s announcement, we believe that total number is now lower as we estimate the assets referenced today make up the vast majority of the value of the total asset divestiture package,” Dley wrote in a note.

Pablo Zuanic, managing partner at New York-based investment banking firm Cantor Fitzgerald, outlined in a Friday note what’s left to divest:

  • Five Ohio stores plus production.
  • A small processor in Maryland.
  • One Florida license.

“The company may opt, although it is not required, to also sell part of its assets in Florida and Pennsylvania for efficiency purposes,” he wrote.

“Based on comps, we think the Florida license could be worth $50 million (although comps may be dated), Ohio for more than $30 million and Maryland for around $5 million,” he added.

“If we add other assets to be sold (Florida/Pennsylvania, we think the company may reach the guidance of $300 million in gross proceeds from asset sales.”

Shares of Columbia Care were up by 2.34% on the Canadian Securities Exchange (CCHW) and by 4.23% on the U.S. over-the-counter markets (CCHWF) on Friday afternoon.

Shares of Cresco were down by 1.16% on the CSE (CL) and by 0.32% on the OTC markets (CRLBF).

Source: https://mjbizdaily.com/sean-diddy-combs-to-buy-cresco-columbia-care-marijuana-assets-for-up-to-185-million/

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

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Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

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Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

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Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

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