Since Pepsi passed on a sponsorship of "American Idol" back when the singing competition was unknown to U.S. viewers, the soft-drink company doesn’t want to make the same mistake again, reports Deadline.com.

With Simon Cowell gearing up for the U.S. version of "The X Factor," Pepsi and Coca-Cola are going head-to-head in a $50 million to $100 million auction for sponsorship rights, the story notes.

Coke has one year left on its contract with "Idol," which it initially secured for less than $10 million, the article adds. "It makes sense that Coke would want to jump on ‘The X Factor’ bandwagon as well. But even though I hear Coke is offering more money, my sources say Cowell et al think Pepsi would make a better fit."

The article points out that by tapping different sponsors from "Idol," the new show would also be able to differentiate itself.