- SodaStream is in talks to sell a 16% stake, according to a report by Israeli newspaper Calcalist. Shares soared as much as 12% on the news Wednesday.
- PepsiCo Inc., Dr. Pepper Snapple Group Inc., and Starbucks are seen as potential suitors for the maker of home-brewed soda machines.
- The purchase price under discussion would give SodaStream a valuation of roughly $1.1 billion, according to the Hebrew-language newspaper.
There's no real surprise here. Rumors that SodaStream would take on a partner with global reach and deep pockets have been spreading since February, when Keurig announced it would form a partnership with Coca-Cola and launch a new soda-making machine.
Still, as sensible as a tie-up between SodaStream and Pepsi or Snapple may be, there's no guarantee that such a deal will happen. SodaStream may have a great product, but it also has a public-relations problem: the company's controversial operations in an Israeli settlement in Palestine. Image-conscious beverage companies may think twice before stepping into the Middle East debate.