Sean ‘Diddy’ Combs Cashed out of DeLeón Tequila for $200 Million Amid Misconduct Allegations

(Photo: DeLeón Tequila)

According to a Diageo investors’ report, rapper-turned-billionaire and music mogul Sean “Diddy” Combs sold his stake in DeLeón Tequila for $200 million just as a wave of sexual misconduct suits toppled his business empire.

On Jan. 16, Combs agreed to sell his 50% stake in DeLeón Tequila to British spirits giant Diageo, the owner of Casamigos, Don Julio, Johnnie Walker and many other brands, according to the report. At one point, the sale would’ve been unheard of; Combs and Diageo had been involved in a bitter legal dispute over the brand mere months earlier.

The feud dates back to May, when Combs publicly accused Diageo of “racially typecasting” his brands, Cîroc Vodka and DeLeón Tequila. The spirits were launched as equal parts ventures between the two parties in 2007 and 2013, respectively. In the years after, Combs claimed Diageo neglected inventory and promotion while proposing racially insensitive product launches.

Diageo quickly countersued Combs, detailing an alleged  $100 million extortion scheme relating to COVID-19 recovery funds.

Combs went on to secure an early win against the spirits company during preliminary proceedings in September. Within months, however, the first of several sexual assault lawsuits was filed against the music mogul.

Two properties belonging to Combs in Los Angeles and Miami were searched on March 25, 2024, by federal Homeland Security Investigations agents and other law enforcement as part of an ongoing sex trafficking investigation by federal authorities in New York. (AP Photo/Eric Thayer)

Legal proceedings over Cîroc and DeLeón appeared to grind to a halt. In January — weeks before a fifth defendant filed a sexual assault suit against the Bad Boy Records founder — Diageo amicably settled the battle with Combs and the two agreed to part ways.

“Sean Combs and Diageo have now agreed to resolve all disputes between them. Mr. Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice,” both parties said in a joint statement. “Diageo and Mr. Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón tequila, which Diageo now solely owns.”

Although Diageo publicly bought out DeLeón for $200 million, the terms of the Cîroc acquisition have yet to be disclosed. Historically, Cîroc was the more profitable of the two brands, regularly charting as one of the top-selling vodkas in America thanks to celebrity sightings and ample music video placements.

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