Avis Buys Zipcar for $500 Million
Yesterday, Avis made a big buck deal with the announcement that they would be buying Zipcar for $500 million.
According to the Examiner, Avis expects to close the deal in early 2013, and some users worry that what makes the unique company stand out will be diluted when it becomes just another Avis business unit. There is also word that the deal may be closely reviewed by the Federal Trade Commission as a possible antitrust issue, but people will have to stay tuned for now.
Zipcar—which offers the unique option to rent cars for as little as one hour—has been a hit amongst college towns & big city commuters who can’t carry loads of groceries on the subway.
Avis chairman and CEO Ronald Nelson says of the union, “By combining with Zipcar, we will significantly increase our growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs.”
If you’ve been following this story, or just have an opinion on big investments, let us know your opinion on this venture.