Starbucks Coffee, favorite of hipster coffee drinkers from coast to coast, is reportedly about to buy a stake in SodaStream.
SodaStream International stocks took their biggest leap in two years after daily newspaper Globesreported Starbucks Corp. is in talks to buy a 10 percent stake in the maker of home soda machines.
Shares of SodaStream soared 14 percent to $46 in New York, in a rally that cut SodaStream’s loss this year to 7.6 percent.
Starbucks, the world’s biggest coffee chain, is in advanced talks to acquire the stake at a company value of $1.1 billion, Globes reported, citing unidentified sources. An official announcement will be made soon, the paper said. Another economic newspaper, Calcalist, reported a week ago that SodaStream, which has a market value of $960 million according to data compiled by Bloomberg, was in talks to sell a stake of the company.
Problem: SodaStream is based in Israel. In the last few years, it has become fashionable to boycott Israel, and products made there, on college campuses. Scarlett Johannsen faced hipster wrath when she starred in ads for SodaStream a few months ago.
If Starbucks buys into SodaStream, will the boycotters turn on their favorite coffee corporation?