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Will SodaStream Be Acquired by Pepsi? SodaStream Earnings Preview

Stocks in this article: SODA AAPL GMCR KO PEP SBUX

NEW YORK (TheStreet) -- SodaStream International (SODA) will report its earnings for the first fiscal quarter of 2014  before the market opens on Wednesday. SodaStream produces a consumer do-it-yourself beverage carbonation system. Buyout rumors have been swirling over SodaStream ever since Coca-Cola (KO) took a 10% stake in Keurig Green Mountain (GMCR) back in February.

Today Coke announced it was increasing its stake in Keurig Green Mountain to 16%. The coffee stock is up nearly 10% in midday trading, to $121.25 at 2:15 p.m.

Ever since Coke took a stake in Green Mountain --likely to bring Coca-Cola beverages to the next iteration of the popular Keurig at-home beverage system -- rumors have been swirling that PepsiCo (PEP) or another beverage giant may be interested in acquiring SodaStream.

This quarter, Wall Street is expecting SodaStream's earnings to come in much weaker than they did in the first quarter of last year, while sales only grew by a negligible $280,000. Concerns over slowing revenue growth have made a buyout of SodaStream a staple of the rumor mill over the past six months. A boost from a larger company with a more successful brand could help raise awareness of SodaStream's product and give instant access to the at-home carbonation market to an established beverage company.

On the crowdsourced merger and acquisition prediction platform, Mergerize.com, five buyout predictions have been made on SodaStream, with PepsiCo being the most commonly predicted acquirer. Other possible buyers could be Starbucks (SBUX) and Coca-Cola. In March, Starbucks gave up an exclusive license for high-end coffee pods on the Keurig system.

Although Starbucks and Green Mountain have had a partnership in recent years, the idea of Starbucks acquiring SodaStream and going head to head with Green Mountain in at-home beverage systems seems unlikely, but it's not outside the realm of possibility. After all, who would have guessed that Apple (AAPL) is in late stage talks to acquire Beats Electronics?

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