⁍ Juul Labs Inc has cut its valuation to about $10 billion from $12 billion at the end of last year.
⁍ The once red-hot e-cigarette maker fizzles in a tumultuous period for the industry.
⁍ Juul was valued at $38 billion in December 2018, when Marlboro maker Altria Group Inc took a 35% stake in the company.
– In December, Marlboro maker Altria Group took a 35% stake in Juul Labs, valued at $38 billion at the time. Less than a year later, the e-cigarette maker’s value has dropped to about $10 billion, according to a company memo seen by Reuters. “Today’s valuation does not surprise me, and I expect other investors to also arrive at lower valuation marks that factor in our recent restructuring,” Juul CEO KC Crosthwaite said in the memo, sent to Juul employees. The company has seen demand for its e-cigarettes decline amid a rise in teen vaping and a ban on popular flavors. In September, the company said it would make a significant cut to its global workforce and explore pulling out of some European and Asia-Pacific markets to save cash. (In September, the company said it would make a significant cut to its global workforce and explore pulling out of some European and Asia-Pacific markets to save cash.)
Source: https://www.reuters.com/article/uk-juul-valuation/e-cigarette-maker-juul-cuts-valuation-to-10-billion-memo-idUSKBN27E3B8