As per the information, from the previous month, Juul was under discussions with the global top five tobacco industries regarding investment in its company, it appears that nicotine-based track is gulping right along.
After gathering the information from the sources familiar with the subject, the Wall Street Journal recently reported that Altria—Marlboro manufacturer and the global tobacco giant—has been planning to invest in Juul Labs by purchasing 35 percent shares that would raise the market value of Juul reaching worth $38 Billion. This investment would allow Juul to significantly rise ahead in terms of financial strength over many of its competitive startups.
The people familiar to the matter also said that addition of $12.8 Billion in the form of cash for Juul’s business could be revealed by this week, which is more than double the market value of the company a few months back. This is a signal of the ongoing rapid development of the startup. Along with this, Atria has also been trying to expand its current cigarettes business by safely entering into the vaping business.
Juul has not responded immediately over the alleged report.
Juul has been positioned in a tricky situation due to the report, as the company’s agenda is to eradicate smoking among the teenagers, and acceptance of the deal offered by Big Tobacco would contradict its quit-smoking tag.
Kevin Burns—CEO of Juul—stated that globally around 1 Billion people still smoke and leads to the world’s top preventable cause of deaths.
Some of the Juul employees stated that ethics were more important for the company than wealth, describing the rumored contract with Atria as a deal with the devil.
In the previous month, Axios—the news website—reported that Juul has not shown any interest in dealing with the cigarette manufacturer, but Altria remained determined, by offering the deal with higher stakes.
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