• Avis to Acquire Zipcar: Rental car company Avis has offered to acquire Zipcar for $500 million, which is half of what Facebook paid for Instagram.
• Zipcar's Features: Allows members to rent cars for short periods (single hours), with rental fee covering insurance and gas, unlike most major rental car companies.
• CEO's Email: In an email to Zipcar members, CEO Scott Griffith announced excitement about the deal, saying it's a major win and they'll step up with more cars, new services, and advanced technology.
• Market Response: The market responded strongly, sending Zipcar's stock up nearly 50 percent to around $12.24 per share. Zipcar recently anticipated its first annual profit of around $4 million.
• Investor and Customer Worries: There are rumblings of worry that the big corporate parent will ruin Zipcar. A former SEC attorney and a securities litigation firm have filed a lawsuit on behalf of Zipcar investors, feeling the bid of $12.25 per share is too low as it's about 50 percent higher than the stock on December 31, 2012. The lawsuit focuses on whether shareholders are getting adequate compensation, if the transaction undervalues the stock, and if the board tried to get the highest share price.