Investors are excited about rumors that Diageo might sell Guinness
The Irish stout has grown in popularity in recent years and could be worth more than $10 billion, according to Bloomberg.
Diageo's share price rose more than 5% on Friday morning after Bloomberg reported that the British booze company was reviewing its portfolio and considering a spin-off or sale of its crown jewel: Guinness.
Diageo, like most companies selling alcohol, have found it harder and harder to find growth as American consumers are drinking less. Still, Guinness has been one part of Diageo’s business that’s been growing recently.
The Irish stout could be valued at over $10 billion, according to Bloomberg.
Diageo, which also makes Johnnie Walker, Buchanan’s, and Casamigos, is set to report earnings for the second half of 2024 on February 5. The Bloomberg report comes as investors have been putting pressure on Diageo while it deals with lackluster international sales. One of its largest and earliest investors, Terry Smith, recently said he would dump his shares in part because early studies have shown that increasingly popular weight-loss drugs also curb alcohol cravings.
Even with the recent bump, Diageo’s share price is still down about 9% in the past year and more than 25% in the past five years.
