SodaStream (SODA) shares cooled Thursday after soaring Wednesday on rumors that Starbucks (SBUX) might buy a 10% stake in the company, putting the value of the soda maker at $1.1 billion. This isn’t the first time rumors of investments in SodaStream have driven up the stock price. Just last week, shares of SodaStream spiked on reports that Starbucks, Dr. Pepper Snapple Group (DPS) and Pepsi (PEP) were in talks with soda stream to buy a stake in the company. And last year there were reports that Pepsi would buy SodaStream outright for more than $2 billion.
In the corresponding video, Yahoo Finance Senior Columnist Mike Santoli spoke with Lauren Lyster about the rumors of investment in SodaStream and its effect on the company’s share price.
Santoli said that there is a reason for the persistent investment and takeover rumors that drive up SodaStream's share price. “I do think it’s a very, very active fertile area for the beverage companies, figuring out exactly how to deal with these devices that you can do things at home, like SodaStream, like Keurig Green Mountain (GMCR), which of course is teamed up with Coca-Cola (KO).”
While he said that there might be an underlying industry move towards these at-home beverage devices, he called a Starbucks-SodaStream partnership “a miss-match idea.” He said if Starbucks wants to, “innovate on the counter top, they might be able to find another way to do it.”
- Consumer Discretionary