Coca-Cola rumored to buy Monster

Speculation circulates that the beverage giant could be on the verge of its largest acquisition ever.

By Benzinga Apr 26, 2012 4:38PM

By Paul Quintaro, Benzinga Staff Writer


According to several analysts Benzinga spoke to Thursday, Coca-Cola (KO) could have its sights set on Monster Beverage (MNST) in an acquisition that may be the beverage giant's largest ever.


Jack Russo of Raymond James thinks Coke might be planning to buy the energy-drink maker. If that were to be the case, he said, investors should look for Coke to begin selling off some bottling assets to raise money. Still, he noted that if Coke were to consider such a move, it may draw fire from shareholders since the purchase price would amount to a "king's ransom."


Shares of Monster Beverage rose nearly 3% Thursday to close at $65.38, giving it a market value of $11.5 billion. Assuming some premium, the purchase would be the largest in Coca-Cola's history. Given the size of the deal, investors may be skeptical of the possibility.


Still, energy drinks remain one the fastest-growing sectors of the beverage market, and Coke's attempt to enter the market with its own Full Throttle has proven to be a failure.


Benzinga spoke to another analyst on the possibility, but he declined to comment on the record as he was not authorized to speak on the matter.


"Yes, the price Coke would have to pay for Monster would be the biggest hangup," he stated. "Still, Coke wants to be a bigger presence in the energy drink market and they already have a fairly close distribution relationship with Monster. The move would be elevating that to the next level. They could do it, but they would really have to be excited about Monster's growth prospects."


Shares of Coca-Cola closed Thursday up 1.04% to $75.71.


More from Benzinga
23Comments
Apr 26, 2012 6:50PM
avatar
Ah yes, "energy drinks", "energy shots", "energy boosts", etc etc etc.  Everyone needs chemically induced energy.  Those poor pioneers of the old west, and the people of the 20th who only had coffee or had to struggle through their day "energyless."  But take heart America!!  There's Xanax, Ativan, Valium, and Klonopin to calm down at night when you're too wired on energy drinks.  What a wonderful society.
Apr 26, 2012 6:45PM
avatar
I buy a case of monster  (24 cans) from costco for $28.00 good deal.
Apr 26, 2012 6:51PM
avatar

That just means lots of people are losing their jobs and the product will most likely go up in price eventually.

 

Buyouts, acquisitions, and mergers are rarely good for anyone but shareholders!! It eliminates competition and in a free enterprise system that is kept in balance with healthy competitors, this is not good news.

 

 

avatar
probably a good idea, Monster is EVERYWHERE, all over my college campus, people get it all the time.
Apr 26, 2012 6:48PM
avatar
Woa! if coke buys it i hope they lower the price of monster. I LOVE THAT STUFF!!!!Wink
Apr 26, 2012 7:08PM
avatar
Another Reason to Love Coca-Cola Products
Apr 26, 2012 7:04PM
avatar
vette_dreamer....um Busch/In-Bev does not the "exclusive" distribution rights to Monster and in fact, Coca-Cola Refreshments distributes Monster in a lot of markets....So my answer would be In=Bev has nothing to say about the buy out, maybe cry a little because Coke distributes its own products....
Apr 26, 2012 7:04PM
avatar
@Sgt Poopenstien ,don't forget about "MONSTER GARAGE"Wink that series was "monster"
Apr 26, 2012 6:56PM
avatar
Monster.com (jobs), Monster cable, Monster Energy drink...sometimes this gets confusing. My brother in law usta work for Monster cable. I applied for a job at Monster Energy drink, through Monster.com. And isnt there a Monster magazine. Lady Gaga has little Monsters. Damn it...there is too many monsters!! lol.
Apr 26, 2012 7:01PM
avatar
Well why not purchase the MONSTER. They own almost everything else. It's a very big risk for them to take. But thats what made them so big.
Apr 26, 2012 7:06PM
avatar
MONSTER is a good energy drink , but everytime i drink them i got to take a "MONSTER CRAP"Angry
Apr 29, 2012 12:08PM
avatar
As a share of MNST, I think this can be a win-win situation for both companies.  Coke obviously doesn't do that well with the Full Throttle and NOS brands and they would be able to distribute the product themselves.  I'm sure Warren Buffet would appauld the move as well because he's the largest shareholder of KO.
Apr 26, 2012 7:07PM
avatar
i wouldnt do that old old mike monster energy is huge especially in the extreme sports world
Apr 26, 2012 6:57PM
avatar

because the technical name is monster energy drinks and monster cable and i don't think they care because they are in different product markets

 

Apr 26, 2012 6:53PM
avatar

Check your brain cells in a few years.

Apr 26, 2012 9:54PM
avatar
I hope Coke does purchase Monster, as a stockholder to Monster, I've done very well in the last year and a half, and this would be great to all Monster stockholders as Coke would pay a premium for it
Apr 26, 2012 7:20PM
avatar
Who cares?! This is one of the worst products you could ever put in your body.
Apr 26, 2012 6:59PM
avatar

The black Full Throttle tastes better than the original Monster ever will.

Apr 26, 2012 6:51PM
avatar
Who cares I still buy store brand, who can afford popular brand. This should cause the prices to go up. Hey what heck as long as the rich keep getting richer.
Apr 26, 2012 7:03PM
avatar
"Large purchase?? I never heard of monster beverage. Are they a real company, or just an internet importer? What do they sell? Where are they located? I'm selling my Coca Cola stocks pronto! Someone is getting a kick back here, perhaps?? I don't knowAngryBaring teeth
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

104
104 rated 1
252
252 rated 2
457
457 rated 3
639
639 rated 4
495
495 rated 5
538
538 rated 6
704
704 rated 7
503
503 rated 8
350
350 rated 9
140
140 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
EOGEOG RESOURCES Inc10
TAT&T Inc9
COPCONOCOPHILLIPS9
DVNDEVON ENERGY CORPORATION9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.