Homestore, Budget Sign Modified Deal

LISLE, Ill. -- Inc. and Budget Group Inc. have reached an agreement to extend a strategic marketing alliance while at the same time settling Homestore's stock price guarantee due in March 2002.

Under the agreement, Homestore issued to Budget approximately 4.8 million shares of Homestore common stock in exchange for the cancellation of Budget's put option included in its original agreement with Homestore. Budget agreed to changes in the appearance of the Homestore logos on at least 30,000 Budget Group trucks.

Additionally, the agreement calls for Budget to advertise the Homestore name an additional year through March 2011. The Homestore shares issued to Budget will be tradable following the filing of a registration statement and the registration statement being declared effective by the SEC. The filing is expected later this week. Trade volume and timing restrictions will exist on the shares.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Why Do We Visit Capitol Hill?

Members of the American Car Rental Association met with U.S. senators, representatives, and their aides last week. Here’s why bringing the message to this forum matters.

The Customer Isn’t Always Right

Not caving to a customer with a blatant agenda may have consequences, especially for a small rental company that relies on stellar Yelp ratings to advertise. But business integrity must prevail.

The Truth Behind Compact Van Depreciation

Why are large van values holding up better than their compact counterparts, and will it last?

Job Finder: Access Top Talent. Fill Key Positions.