Coca-Cola is contemplating buying Monster Beverage Corp. in order to expand their energy drink market, The Wall Street Journal reports, citing anonymous sources.
If the soft drink giant were to buy Monster Beverage it would be CoaCola’s biggest brand acquisition . The world’s soft drink monster may then become the leader in the expanding energy drink market.
Monster has a capitalization of $11 billion and the company is continuing to grow. First known as Hansen Natural, Monster was made for public consumption by their current CEO Rodney Sacks in 1992. He still currently owns 7.3 percent stake in the company, according to Thomson Reuters data.
People who wondered about whether Coca-Cola would buy Monster is a topic that has been speculated in the past, partly because of Monster’s high increase in growth and also due to the fact that Coca-Cola is a distributor of Monster’s energy drinks.
Though there was a rapid increase on Monday, Monster’s shares have doubled over the past year. The company’s market capitalization was nearly $11.4 billion when the market closed on Friday, which is an outstanding number when compared to February 24.
Yahoo reported that Monster’s shares went up $8.20, or 12.5 percent, to $73.73 on the Nasdaq. Coke shares on the other hand went down 63 cents, or 0.8 percent, at $76 on the New York Stock Exchange.
Acquiring Monster Beverage may be the best thing for the Coca-Cola Company.
When Yahoo attempted to talk to a Coca-Cola spokesperson, no one was available for comment at the time, while Monster representatives said it is not their company’s protocol to comment on rumors.
Do you think Monster would still be just as good if Coca-Cola owned them?