Avis buys car-sharing service Zipcar

Avis is leaping into the car-sharing service business by buying Zipcar for $491.2 million, aiming to capture a new type of customer and technology that will vastly expand its car rental options.

Car sharing has become a popular alternative to traditional rentals in metropolitan areas and on college campuses, allowing members to get a vehicle for an hour or two for short trips instead of renting a car for a day or using mass transit. The segment has been growing while traditional car rentals have struggled in the current slow-growth economy.

Zipcar, which was founded in 2000, has more than 760,000 members, triple what it had in 2008. It went public in 2011 and 2012 is expected to be its first-ever profitable year. Avis Budget Group Inc. is the third-largest U.S. rental car company, behind Enterprise Rent-a-Car and Hertz Global Holdings Inc.

AP

Zipcar Chairman and CEO Scott Griffith stands with a Zipcar Mini-Cooper before the opening bell at the NASDAQ Market Site in New York. Avis is buying Zipcar for $491.2 million, expanding its offerings from traditional car rentals to car sharing services.

"I've been somewhat dismissive of car sharing in the past but what I've come to realize is that car sharing, particularly on the scale that Zipcar has achieved and will achieve, is complementary to our traditional business," Avis' Chairman and CEO Ron Nelson said in a conference call after the deal was announced.

Nelson said the acquisition means Avis will now be able to reach younger, more tech-savvy consumers that prefer sharing services.

Zipcar parks cars throughout cities and college campuses, which allows renters to avoid waiting in lines at traditional car rental counters. Some areas provide reserved parking for the cars, which can be located online or through the companies' smart phone applications. That technology was attractive to Avis, which hopes to expand Zipcar's vast technological capabilities to its own business.

The car-sharing companies pay for fuel, a cost not included in standard car rentals. Although the hourly rental options are quicker and cheaper than renting a car by the day, Zipcar and other car-sharing services are generally more expensive for rentals longer than 24 hours.

The acquisition will help Avis better compete with Enterprise and Hertz, which have their own smaller car-sharing services. And having access to Avis' fleet of cars will help Zipcar meet high demand on weekends when most people take a trip to the grocery store or run other errands.

Avis estimates it will save about $50 to $70 million a year through combining the two businesses into one.

Avis Budget Group Inc. will pay $12.25 per share, which is a 49 percent premium to Zipcar's closing price on Friday. The stock lost more than half its value in early 2012 year as its results and outlook spooked Wall Street. But late last year, the stock began to recover as the company saw growth in members and revenue. And on Wednesday, the stock soared 48.4 percent to $12.23.

The boards of both companies unanimously approved the buyout. If Zipcar shareholders approve the deal, it's expected to close in the spring.

Avis, which is based in Parsippany, N.J., said it expects certain members of Zipcar management, including Chairman and CEO Scott Griffith and President and Chief Operating Officer Mark Norman, to help run its day-to-day operations.

Avis also maintained its 2012 adjusted earnings forecast Monday of about $2.35 to $2.45 per share on revenue of approximately $7.3 billion. Analysts predict earnings of $2.42 per share on revenue of $7.3 billion.

Avis shares jumped 4.7 percent to $20.76, after earlier hitting a new 52-week high of $21.09.

Read More..

World markets rally after U.S. ‘fiscal cliff’ deal

LONDON --
The world’s financial markets breathed a huge sigh of relief Wednesday that U.S. lawmakers agreed on a budget deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world’s biggest economy into recession.

Stocks around the world started 2013 with hefty gains as investors welcomed the vote in the House of Representatives that made sure that the U.S. does not go over the so-called “fiscal cliff.” Though longer-term fiscal problems remain and President Barack Obama will likely face more battles with the Republican-dominated House, investors were relieved that the biggest near-term stumbling block to the world economy has been cleared.

“Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the presidential elections back in November,” said Mike McCudden, head of derivatives at stockbroker Interactive Investor.

In Europe, the FTSE 100 index of leading British shares jumped 2.2 percent to 6,028, its first foray above the 6,000 mark since July 2011. The CAC-40 in France rose 2.4 percent to 3,729 while Germany’s DAX was up 2.3 percent at 7,786.

Earlier, in Asia, Hong Kong’s Hang Seng index shot up 2.9 percent to close at 23,311.89, its highest finish since June 1, 2011. Australia’s S&P/ASX 200 surged 1.2 percent to close at 4,705.90, its best finish in 19 months while South Korea’s Kospi jumped 1.7 percent to 2,031.10.

Wall Street was likewise set to rally on the open – Dow futures were up 1.3 percent at 13,195 while the broader S&P 500 futures jumped 1.5 percent to 1,441.

The “fiscal cliff” deal is likely to remain the focus of attention in financial markets over the rest of the day.

The bill that Congress approved calls for higher taxes on incomes over $400,000 for individuals and $450,000 for couples, a victory for Obama. Earnings above those amounts would be taxed at a rate of 39.6 percent, up from the current 35 percent. It also delays for two months $109 billion worth of across-the-board spending cuts that had been set to start affecting the Pentagon and domestic agencies this week.

If lawmakers had not agreed by the Jan. 1, 2013 deadline on the new budget measures, more than $500 billion in tax increases would have hit the economy in 2013 alone. Government spending worth $109 billion would have been cut from the military and domestic spending programs.

Though fears over an imminent fall off the “fiscal cliff” have eased, investors still have a host of issues to worry about – not least the prospect of more debates over unresolved longer-term U.S. budget issues.

“Cynics will point out that another argument has been booked in for two months’ time, when the debt ceiling comes up for debate, and Republicans will be looking to make progress on the spending cuts that haven’t been featured in the New Year deal,” said Chris Beauchamp, market analyst at IG.

Investors will also keep a close watch on any response from the credit rating agencies. After a fight in Congress to raise the debt limit in 2011, Standard & Poor’s lowered the U.S. government’s AAA bond rating, citing the lack of a credible plan to reduce the federal government’s debt. It also voiced its concerns about the “effectiveness, stability and predictability of American policymaking.”

Read More..

Peeping tom suspect nabbed at Forever21 store at Sawgrass Mills mall

A suspected “peeping tom” was arrested Sunday after he was caught with video of women trying on clothes at the Forever21 store at the Sawgrass Mills mall.

Andre Clements, 30, has been charged with video voyeurism and disorderly conduct, Sunrise police said.

A manager at the store became suspicious when Clements, 30, was caught loitering in the dressing rooms. Customers also complained about Clements.

The manager alerted mall security, who called Sunrise police. When police arrived, the manager found several large slits in the curtain which separated the fitting room Clements was in and the adjoining fitting room.

In Clements possession police found a Sony camcorder with videos of young women changing clothes.

Clements admitted taping the women just before police had arrived.

Read More..

No surprise: YouTube, Angry Birds, Instagram and Facebook among 2012′s top apps

Title Post: No surprise: YouTube, Angry Birds, Instagram and Facebook among 2012′s top apps
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment

Read More..

Kim K. Exclusive: Pregnancy is Hard

Entertainment Tonight's Christina McLarty was the first to catch up with Kim Kardashian in Las Vegas at her first appearance since her boyfriend, rap star Kanye West, announced that they are expecting a child together.

Pics: Kim's Pre-Pregnancy Style 

Kardashian tells ET that pregnancy is harder than she imagined and the changes to her body are difficult. She also tells McLarty that she is taking a lot of naps.

"I wouldn't say it's been easy," she said. "When people say that pregnancy is fun and they love it I would have to disagree. ... Even my sister has made it look easy, but it's not as easy as people think. ... I heard it's all worth it so I'm looking forward to that."

Related: Kardashians and Friends Tweet Congrats for Pregnancy

Kardashian hosted a New Year’s Eve event at 1OAK Nightclub at The Mirage.

Read More..

World's largest Ferris wheel to go forward in Superstorm Sandy devestated SI

While New York City grapples with rebuilding after Superstorm Sandy, developers are pressing ahead with plans to build the world's largest Ferris wheel on the shoreline of storm-torn Staten Island.

Sandy's flooding spurred some changes to the nearly $500 million project, which includes an outlet mall and hotel. But developers haven't slowed it or scaled it back.

Supporters say Staten Island needs the boost now more than ever.

Some residents have asked whether it makes sense to push ahead with a tourist attraction, set partly in a flood zone, before officials take a comprehensive look at how to build smarter after Sandy.

REUTERS

An artist rendering of the giant ferris wheel planned for Staten Island.

Wheel developer Richard Marin says the project stands to provide a one-of-a-kind boon that Staten Island "would have no other way of getting right now."

Read More..

Housing, jobs key to lifting S&P toward record

NEW YORK --
With it appearing that Washington lawmakers are working their way past the “fiscal cliff,” many analysts say that the outlook for stocks in 2013 is good, as a recovering housing market and an improving jobs outlook helps the economy maintain a slow, but steady recovery.

Reasonable returns in 2013 would send the S&P 500 toward, and possibly past, its record close of 1,565 reached in October 2007.

A mid-year rally in 2012 pushed stocks to their highest in more than four years. Both the Standard & Poor’s 500 and the Dow Jones industrial average posted strong gains in 2012. Those advances came despite uncertainty about the outcome of the presidential election and bouts of turmoil from Europe, where policy makers finally appear to be getting a grip on the region’s debt crisis.

“As you remove little bits of uncertainty, investors can then once again return to focusing on the fundamentals,” says Joseph Tanious, a global market strategist at J.P. Morgan Funds. “Corporate America is actually doing quite well.”

Although earnings growth of S&P 500 listed companies dipped as low as 0.8 percent in the summer, analysts are predicting that it will rebound to average 9.5 percent for 2013, according to data from S&P Capital IQ. Companies have also been hoarding cash. The amount of cash and cash-equivalents being held by companies listed in the S&P 500 climbed to an all-time high $1 trillion at the end of September, 65 percent more than five years ago, according to S&P Dow Jones Indices.

Assuming a budget deal is reached in a reasonable amount of time, investors will be more comfortable owning stocks in 2013, allowing valuations to rise, says Tanious.

Stocks in the S&P 500 index are currently trading on a price-to-earnings multiple of about 13.5, compared with the average of 17.9 since 1988, according to S&P Capital IQ data. The ratio rises when investors are willing to pay more for a stock’s future earnings potential.

The stock market will also likely face less drag from the European debt crisis this year, said Steven Bulko, the chief investment officer at Lombard Odier Investment Managers. While policy makers in Europe have yet to come up with a comprehensive solution to the region’s woes, they appear to have a better handle on the region’s problems than they have for quite some time.

Stocks fell in the second quarter of 2012 as investors fretted that the euro region’s government debt crisis was about to engulf Spain and possibly Italy, increasing the chances of a dramatic slowdown in global economic growth.

“There is still some heavy lifting that needs to be done in Europe,” said Bulko. Now, though, “we are dealing with much more manageable risk than we have had in the past few years.”

Next year may also see an increase in mergers and acquisitions as companies seeks to make use of the cash on their balance sheets, says Jarred Kessler, global head of equities at broker Cantor Fitzgerald.

While the number of M&A deals has gradually crept higher in the past four years, the dollar value of the deals remains well short of the total reached five years ago. U.S. targeted acquisitions totaled $964 billion through Dec. 27, according to data tracking firm Dealogic. That’s slightly down from last year’s total of $1 trillion and about 40 percent lower than in 2007, when deals worth $1.6 trillion were struck.

Read More..

North Florida private killed in Afghanistan

A Florida soldier who was on his first deployment to Afghanistan was killed this weekend in an explosion, the Pentagon said Monday.

Army Pfc. Markie T. Sims, 20, of Citra, north of Ocala, died Saturday in Panjwal, Afghanistan, of wounds suffered when enemy forces attacked his unit with an improvised explosive device, according to a Defense Department statement.

A combat engineer by training, Sims joined the military in November 2011, trained at Fort Leonard Wood in Missouri and was assigned to his first duty station at Joint Base Lewis-McChord with the 38th Engineer Company, 4th Stryker Brigade Combat Team, 2nd Infantry Division. It was not immediately known how long he had been in Afghanistan.

His remains were being returned to the U.S. on Monday, New Year’s Eve, at Dover Air Force Base in Delaware.

Read More..

A New Year's Tradition: Dick Clark Rocks On

New Year's Eve will never quite be the same without the faithful presence of the beloved, late Dick Clark to ring in the New Year, and we're looking back at the rich life of the entertainment icon whose legacy lives on. Watch the video!

Pics: Legend Dick Clark & Music's Biggest Names

Despite overcoming a devastating stroke, Dick seemed in good health and full of good humor when America saw him welcome in 2012 from Times Square in New York City on Dick Clark's New Year's Rockin' Eve, complete with a kiss for his wife Carrie. But on April 18, Dick died of a massive heart attack at 82, and we all mourned the loss of "The World's Oldest Teenager."

"There's no great secret to staying young inside your head," said the timeless American Bandstand host in a 1990 interview with ET. "I didn't realize 'til I was older how significant that is, because I do run into people my own age who I feel are older than they have to be, only because they've let it happen. If you don't let it happen inside your head, you're much better off."

Video: Dick Clark's Top 'American Bandstand' Moments

This year will mark the first time Ryan Seacreast is hosting Dick Clark's New Year's Rockin' Eve on ABC without his friend and mentor, but we know that Dick will be there to watch the ball drop in spirit to welcome 2013. We miss you, Dick.

Read More..

Jackson family members won't be prosecuted in fight with Michael's kids: report

None of the Jackson family members will be prosecuted over their violent scuffle in July outside the home of family matriarch Katherine Jackson, according to an online report.

The case is now closed because no one from the Jackson family would speak to cops, according to TMZ.

Singer Janet Jackson allegedly slapped her teenage niece Paris and called her a “spoiled bitch” after she tweeted about her missing guardian and grandmother, Katherine. Security footage shows Janet and her brother Randy approaching the 14-year-old girl and trying to snatch her cell phone away.

Paris had been on Twitter for days, demanding the whereabouts of her grandmother.

“9 days and counting . . . so help me god i will make whoever did this pay,” tweeted Paris.

Janet, Randy and Jermaine confronted Paris and her brother Prince, and tried to take away their cell phones.

“This is our house. Not the Jackson family house. Get the f--k out!” Paris allegedly told her aunt and uncles, TMZ reported.

There was subsequently a physical confrontation between Randy and Jermaine on one side, and Trent on the other. Cops rushed to the scene.

Read More..