Tobacco giant Altria takes 35% stake in Juul, valuing e-cigarette company at $38 billion

Tobacco giant invested $12.8 billion in Juul, taking a 35 percent stake in the e-cigarette maker that valued it at $38 billion as they begin to embark on a new path that relies less on traditional cigarettes.

The all-cash deal announced Thursday has drawn criticism for Juul, which has positioned itself as an enemy of Big Tobacco.

“We are taking significant action to prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes by investing $12.8 billion in Juul, a world leader in switching adult smokers,” Altria CEO Howard Willard said in a statement. “We have long said that providing adult smokers with superior, satisfying products with the potential to reduce harm is the best way to achieve tobacco harm reduction.”