Past hosts teaming for Spike Video Game Awards












LOS ANGELES (AP) — The Spike Video Game Awards are assembling past hosts.


The cable network announced Thursday that the gaming extravaganza’s previous emcees would join “The Avengers” star and four-time VGAs host Samuel L. Jackson at next week’s show.












Previous hosts Zachary Levi, Snoop Lion, Jack Black and Neil Patrick Harris are set to appear at the 10th annual ceremony.


The show will also feature debut footage from upcoming games “BioShock Infinite,” ”Castlevania: Lords of Shadow 2″ and “Tomb Raider,” and from downloadable content “Spartan Ops” for “Halo 4″ and “The Tyranny of King Washington” for “Assassin’s Creed III.”


“Assassin’s Creed III,” ”Dishonored,” ”Journey,” ”Mass Effect 3″ and “The Walking Dead: The Game” are vying for the best game trophy.


The VGAs will air live on Spike on Dec. 7 from Sony Picture Studios in Culver City, Calif.


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Myanmar cracks down on mine protest; dozens hurt












MONYWA, Myanmar (AP) — Security forces used water cannons and other riot gear Thursday to clear protesters from a copper mine in in northwestern Myanmar, wounding villagers and Buddhist monks just hours before opposition leader Aung San Suu Kyi was to visit the area to hear their grievances.


The crackdown at the Letpadaung mine near the town of Monywa risks becoming a public relations and political fiasco for the reformist government of President Thein Sein, which has been touting its transition to democracy after almost five decades of repressive military rule.












The environmental and social damage allegedly produced by the mine has become a popular cause in activist circles, but was not yet a matter of broad public concern. However, hurting monks — as admired for their social activism as they are revered for their spiritual beliefs — is sure to antagonize many ordinary people, especially as Suu Kyi’s visit highlights the events.


“This is unacceptable,” said Ottama Thara, a 25-year-old monk who was at the protest. “This kind of violence should not happen under a government that says it is committed to democratic reforms.”


According to a nurse at a Monywa hospital, 27 monks and one other person were admitted with burns caused by some sort of projectile that released sparks or embers. Two of the monks with serious injuries were sent for treatment in Mandalay, Myanmar’s second biggest city, a 2 ½ hour drive away. Other evicted protesters gathered at a Buddhist temple about 5 kilometers (3 miles) from the mine’s gates.


Lending further sympathy to the protesters’ cause is whom they are fighting against. The mining operation is a joint venture between a Chinese company and a holding company controlled by Myanmar’s military. Most people remain suspicious of the military, while China is widely seen as having propped up army rule for years, in addition to being an aggressive investor exploiting the country’s many natural resources.


Government officials had publicly stated that the protest risked scaring off foreign investment that is key to building the economy after decades of neglect.


State television had broadcast an announcement Tuesday night that ordered protesters to cease their occupation of the mine by midnight or face legal action. It said operations at the mine had been halted since Nov. 18, after protesters occupied the area.


Some villagers among a claimed 1,000 protesters left the six encampments they had at the mine after the order was issued. But others stayed through Wednesday, including about 100 monks.


Police moved in to disperse them early Thursday.


“Around 2:30 a.m. police announced they would give us five minutes to leave,” said protester Aung Myint Htway, a peanut farmer whose face and body were covered with black patches of burned skin. He said police fired water cannons first and then shot what he and others called flare guns.


“They fired black balls that exploded into fire sparks. They shot about six times. People ran away and they followed us,” he said, still writhing hours later from pain. “It’s very hot.”


Photos of the wounded monks showed they had sustained serious burns on parts of their bodies. It was unclear what sort of weapon caused them.


The protest is the latest major example of increased activism by citizens since the elected government took over last year. Political and economic liberalization under Thein Sein has won praise from Western governments, which have eased sanctions imposed on the previous military government because of its poor record on human and civil rights. However, the military still retains major influence over the government, and some critics fear that democratic gains could easily be rolled back.


In Myanmar’s main city of Yangon, six anti-mine activists who staged a small protest were detained Monday and Tuesday, said one of their colleagues, who asked not to be identified because he did not want to attract attention from the authorities.


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South Africa awards $667 million HIV drugs supply contract












JOHANNESBURG (Reuters) – South Africa on Thursday awarded a $ 667 million contract to supply life-prolonging HIV medicine to 12 international and domestic firms, to deal with its biggest health problem.


Companies that include Aspen Pharmacare, Abbott Laboratories and Adcock Ingram would share the contract, the health department said.












The 5.9 billion rand ($ 667 million) contract, effective from April next year, aims to increase the number of people on treatment by nearly 50 percent, to 2.5 million next year.


South Africa has nearly 6 million people infected with HIV — one of the heaviest caseloads in the world. It also has one of largest treatment programs.


But drug makers are unlikely to rake in big profits from the government award, analysts have said, given the stiff competition in the bidding.


The health department said it saved 2.2 billion rand on the new contract, which it initially expected it would cost 8.1 billion rand.


Aspen Pharmacare, the country’s biggest generic drugs maker, was awarded 20 percent of the contract while its closest domestic rival, Adcock Ingram was given 14 percent, the health department said.


Other contracts winners included Chicago-based Abbott Laboratories with 8.1 percent, and domestic firm Cipla Medpro with 9 percent.


(Reporting by Tiisetso Motsoeneng; editing by David Dolan)


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R&B star Mary J. Blige sued for defaulting on $2.2 million loan












(Reuters) – R&B star Mary J. Blige was hit with a lawsuit on Wednesday alleging the Grammy winner and her husband defaulted on a $ 2.2 million bank loan.


According to court documents filed in New York State Supreme Court in Manhattan, Signature Bank is seeking to recoup the original loan plus $ 58,000 in interest.












Blige, 41, who has sold more than 50 million albums worldwide, and her husband Martin Isaacs took out the loan in October 2011 and defaulted in July 2012, the suit alleges.


Blige’s publicist declined comment on the lawsuit. The singer’s attorney did not immediately return a request to comment.


The lawsuit also names Blige’s production company, Mary Jane Productions Inc.


The lawsuit is the latest financial headache for the New York City native. The “Family Affair” singer’s charity, The Mary J. Blige and Steve Stoute Foundation for the Advancement of Women Now Inc, was accused earlier in this year of mishandling funds and cheating scholarship students.


Blige acknowledged the problems in a June interview.


“The lives of young women are at stake,” the singer told Reuters when asked about the allegations. “I feel what they feel. I don’t want them to suffer. I promised them something and I’m gonna deliver. Period.”


(Reporting by Eric Kelsey, editing by Jill Serjeant and Todd Eastham)


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Two winners in record Powerball jackpot




Winning tickets for the record Powerball jackpot worth more than $587 million were purchased in Arizona and Missouri.


Missouri Lottery official Susan Goedde confirmed to ABC News this morning that one of the winning tickets was purchased in the state, but they would not announce which town until later this morning.


Arizona lottery officials said they had no information on that state's winner or winners but would announce where it was sold during a news conference later in the day.


The winning numbers for the jackpot were 5, 23, 16, 22 and 29. The Powerball was 6.


The jackpot swelled to $587.5 million, according to Lottery official Sue Dooley. The two winners will split the jackpot each getting $293.75 million. The cash payout is $192.5 million each.


An additional 8,924,123 players won smaller prizes, according to Powerball's website.


"There were 58 winners of $1 million and there were eight winners of $2 million. So a total of $74 million," said Chuck Strutt, Director of the Multi-State Lottery Association.


In Photos: Biggest Lotto Jackpot Winners


This is the 27th win for Missouri, ranking it second in the nation for lottery winners after Indiana, which has 38 wins. Arizona has had 10 Powerball jackpot wins in its history.


Players bought tickets at the rate of 131,000 every minute up until an hour before the deadline of 11 p.m. ET, according to lottery officials.


The jackpot had already rolled over 16 consecutive times without a winner. That fact, plus the doubling in price of a Powerball ticket, accounted for the unprecedented richness of the pot.


"Back in January, we moved Powerball from being a $1 game to $2," said Mary Neubauer, a spokeswoman at the game's headquarters in Iowa. "We thought at the time that this would mean bigger and faster-growing jackpots."


That proved true. The total, she said, began taking "huge jumps -- another $100 million since Saturday." It then jumped another $50 million.


The biggest Powerball pot on record until now -- $365 million -- was won in 2006 by eight Lincoln, Neb., co-workers.
As the latest pot swelled, lottery officials said they began getting phone calls from all around the world.


"When it gets this big," said Neubauer, "we get inquiries from Canada and Europe from people wanting to know if they can buy a ticket. They ask if they can FedEx us the money."


The answer she has to give them, she said, is: "Sorry, no. You have to buy a ticket in a member state from a licensed retail location."


About 80 percent of players don't choose their own Powerball number, opting instead for a computer-generated one.
Asked if there's anything a player can do to improve his or her odds of winning, Neubauer said there isn't -- apart from buying a ticket, of course.


Lottery officials put the odds of winning this Powerball pot at one in 175 million, meaning you'd have been 25 times more likely to win an Academy Award.


Skip Garibaldi, a professor of mathematics at Emory University in Atlanta, provided additional perspective: You are three times more likely to die from a falling coconut, he said; seven times more likely to die from fireworks, "and way more likely to die from flesh-eating bacteria" (115 fatalities a year) than you are to win the Powerball lottery.


Segueing, then, from death to life, Garibaldi noted that even the best physicians, equipped with the most up-to-date equipment, can't predict the timing of a child's birth with much accuracy.


"But let's suppose," he said, "that your doctor managed to predict the day, the hour, the minute and the second your baby would be born."


The doctor's uncanny prediction would be "at least 100 times" more likely than your winning.


Even though he knows the odds all too well, Garibaldi said he usually plays the lottery.


When it gets this big, I'll buy a couple of tickets," he said. "It's kind of exciting. You get this feeling of anticipation. You get to think about the fantasy."


So, did he buy two tickets this time?


"I couldn't," he told ABC News. "I'm in California" -- one of eight states that doesn't offer Powerball.


In case you were wondering, this Saturday's Powerball jackpot is starting at $40 million.


ABC News Radio contributed to this report.

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US rabbi says jailed American in good health












HAVANA (AP) — A prominent New York rabbi and physician visited an American subcontractor serving a long jail term in Cuba and said the man is in good health, despite his family’s concerns about a growth on his right shoulder.


Rabbi Elie Abadie, who is also a gastroenterologist, told The Associated Press in an exclusive interview following Tuesday’s 2 1/2-hour visit at a military hospital in Havana that he personally examined Alan Gross and received a lengthy briefing from a team of Cuban physicians who have attended him.












He said the 1 1/2-inch growth on Gross’s shoulder appeared to be a non-cancerous hematoma that should clear up by itself.


“Alan Gross does not have any cancerous growth at this time, at least based on the studies I was shown and based on the examination, and I think he understands that also,” Abadie said.


Abadie said the hematoma, basically internal bleeding linked to the rupture of muscle fiber, was likely caused by exercise Gross does in jail. He said the growth ought to eventually disappear on its own.


Gross’s plight has put already chilly relations between Cuba and the United States in a deep freeze. The Maryland native was arrested in December 2009 while on a USAID-funded democracy building program and later sentenced to 15 years in jail for crimes against the state.


He claims he was only trying to help the island’s small Jewish community gain Internet access.


Gross’s health has been an ongoing issue during his incarceration. The 63-year-old, who was obese when arrested, has lost more than 100 pounds while in jail.


Abadie, a rabbi at New York’s Edmund J. Safra Synagogue, said Gross’s weight is appropriate for a man his age and height.


Photos that Abadie and a colleague provided to AP of Tuesday’s meeting with Gross showed him looking thin, but generally appearing to be in good spirits.


In one photo, Gross holds up a handwritten note that says “Hi Mom.”


“He definitely feels strong. He is in good spirits. He feels fit, to quote him, physically. But of course, like any other person who is incarcerated or in prison, he wants to be free. He wants to be able to go back home,” Abadie said.


Gross’s family has repeatedly appealed for his release on humanitarian grounds, noting his health problems and the fact that his adult daughter and elderly mother have both been battling cancer.


Jared Genser, counsel to Alan Gross, said late Tuesday that Rabbi Abadie is not Gross’s physician and he would like an oncologist of his choosing to evaluate him.


“While we are grateful Rabbi Abadie was able to see Alan, we have asked an oncologist to review the test results to determine if they are sufficient to rule out cancer. More importantly, if Alan is so healthy, we cannot understand why the Cuban government has repeatedly denied him an independent medical examination by a doctor of his choosing as is required by international law,” said Genser.


Gross and his wife recently filed a $ 60 million lawsuit against his former Maryland employer and the U.S. government, saying they didn’t adequately train him or disclose risks he was undertaking by doing development work on the Communist-run island.


They filed another lawsuit against an insurance company they say has reneged on commitments to pay compensation in case of his wrongful detention.


Separately, a lawyer for Gross has written the United Nations’ anti-torture expert, saying Cuban officials’ treatment of his client “will surely amount to torture” if he continues to be denied medical care.


Rumors have been swirling in U.S. media that Cuba might soon release Gross as a gesture of good will or in the hopes of winning concessions from the administration of President Barack Obama, but Abadie said that those reports appeared to be false.


“As far as I know there is no truth to it,” he said.


Abadie said he met with senior Cuban officials who expressed their desire to resolve the case “as quickly as possible,” but would not say specifically who he spoke with or what they offered.


“They claim that they are more than willing to sit at the table,” he said.


Cuban officials have strongly implied they hope to trade Gross for five Cuban agents sentenced to long jail terms in the United States, one of whom is already free on bail.


Abadie said Gross made clear that he does not want his case linked to that of the agents, known in Cuba as “The Five Heroes,” because he does not believe he is guilty of espionage.


But Abadie said Gross is hoping for a “constructive and productive” dialogue between U.S. and Cuban officials to resolve his case.


___


Follow Paul Haven on Twitter: http://www.twitter.com/paulhaven.


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Van Gogh, John Lennon letters coming to NY auction












NEW YORK (AP) — An upcoming auction of over 300 historical documents includes rare letters written by Vincent van Gogh, George Washington, John Lennon and other iconic figures.


The property of an anonymous American collector is being offered by Profiles in History in an online and phone auction on Dec. 18.












Among the highlights is a two-page letter from Washington to an Anglican clergyman.


Another top item is a signed van Gogh letter, written in 1890, to Joseph and Marie Ginoux, who were proprietors of the Cafe de la Gare in Arles, France, where the Dutch post-impressionist artist lived for a time.


Each of those letters is estimated to bring $ 200,000 to $ 300,000.


A handwritten letter from John Lennon to Eric Clapton has a pre-sale estimate of $ 20,000 to $ 30,000.


The collection will be exhibited Dec. 3-9 at Douglas Elliman’s Madison Avenue art gallery.


Washington‘s letter was written on Aug. 15, 1798, to the Rev. Jonathan Boucher, amid an undeclared naval war with France. Washington thanks Boucher for sending him his “View of the Causes and Consequences of the American Revolution,” a book of 13 discourses Boucher preached.


“Peace, with all the world is my sincere wish, I am sure it is our true policy — and am persuaded it is the ardent desire of the Government,” the former president and Founding Father wrote.


In a Jan. 20, 1890, four-page letter, handwritten in French to his friends Monsieur and Madame Ginoux, van Gogh wishes the ailing proprietress a speedy recovery.


“Illnesses are there to make us remember again that we are not made of wood,” the artist wrote. “That’s what seems the good side of all this to me. Then afterwards one goes back to one’s everyday work less fearful of the annoyances, with a new store of serenity.” Van Gogh died less than seven months later.


He suffered from acute anxiety and bouts of depression throughout his life. Madame Ginoux and the cafe were frequent subjects of his work.


The eight-page letter from Lennon is a draft he wrote to Clapton on Sept. 29, 1971, and signed “John and Yoko.” The whereabouts of the final version is unknown.


Lennon writes candidly about his admiration for the great British guitarist and suggests forming a “‘nucleus’ group (Plastic Ono Band) . — and of course had YOU!!! In mind as soon as we decided.” He writes that drummer Jim Kelnter, artist Klaus Voormann, pianist Nicky Hopkins and producer Phil Spector “all agreed so far” to join.


“Anyway, the point is, after missing the Bangla-Desh concert, we began to feel more and more like going on the road, but not the way I used with the Beatles — night after night of torture. We mean to enjoy ourselves, take it easy, and maybe even see some of the places we go to! We have many ‘revolutionary’ ideas for presenting shows that completely involve the audience .”


Other luminaries whose papers will be sold include Lou Gehrig, Louis Pasteur, Sigmund Freud, Charles Darwin, Marie Curie, Giuseppe Verdi, Peter Tchaikovsky, Cole Porter, King Henry II and Napoleon I.


The December auction is the first of several sales that will be held over two years. The entire collection contains 3,000 items.


__


Online:


Information on how to bid is available on www.profilesinhistory.com.


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Flu Can Kill Quickly, Taking Lives of Healthy Children












In just eight months at his new school in Rifle, Colo., Austin Booth made a name for himself as a star athlete, honor student and a popular classmate with a promising future.


But within six days after he contracted the flu last January, Austin was dead. He was 17. His parents had never even considered giving a flu shot to their otherwise healthy teen.












“It was flu season and we knew other kids who were sick and we didn’t think that much about it,” said his mother, Regina Booth, 42. “He was a healthy teenager.”


“He was just one of those kids that excelled at everything,” she said. “And he was the type of kid who made friends instantly.”


“It was pretty tough — and it seems like just yesterday,” said Booth, who is 38 weeks pregnant and now annually immunizes her four other children, aged 3 to 16.


“Now that we are expecting a new baby, it protects us and the baby,” she said.


Debunking Four of the Most Common Flu Shot Myths


Between 3,000 and 49,000 Americans die of influenza each year, according to the Centers for Disease Control and Prevention.More than 200,000 are hospitalized annually with flu-related complications like pneumonia.


In the past four years, the CDC has changed its recommendations and now urges all Americans six months and older get a flu shot. Children under the age of 9, who are getting immunized for the first time, should get two doses, one month apart.


Booth said she still cannot believe how sudden her son’s death was. On Tuesday night, he had started and played a full basketball game. By Wednesday night, he was coughing up blood and was rushed to the hospital with pneumonia.


“They intubated him as he struggled to breathe,” said his mother. “It was the last time I talked to him.”


His father Carl, who worked on an oil rig and couldn’t be reached, was never able to see his son conscious again. Austin was airlifted to St. Mary’s Hospital in Grand Junction and at first, doctors thought he would survive.


But soon, his condition got worse — even on “every antibiotic in the world” — and Austin had to be taken off the ventilator and manually “bagged.” Tests showed the teen positive for the virulent infection MRSA.


“Doctor’s said it was a perfect storm of pneumonia and MRSA,” said Booth. “He fought Thursday until Monday, but it was more than his body could handle.”


Hundreds of Austin’s new friends showed up for his funeral. The basketball team retired his #2 jersey and Austin was recognized with a school bench and a memory stone.


“We had never gotten the flu shot — not any of us,” she said. “We thought, we don’t need it, we are healthy. If we get the shot it will make us sick.”


Dr. William Schaffner, professor and chairman of preventive medicine at Vanderbilt University in Nashville, said that people are fooled into thinking that influenza, a serious respiratory infection, is just like a cold.


“People use the word ‘flu‘ very casually to refer to a whole variety of winter illnesses, including a stuffy nose, and that tends to trivialize it,” said Schaffner. “It is a serious viral infection — it wreaks havoc on all the body’s systems.”


“Although it can be mild and often is, it is often very, very serious and can strike an otherwise normal child and put them in intensive care, usually within 48 hours.”


The most serious complications occur among older people, but each year children die of the disease — and “it’s potentially preventable,” according to Schaffner.


“While it is an imperfect vaccine, it is the best influenza vaccine at the present time,” he said. Though it does not always prevent infection, because viruses change each year, it can “turn a more serious flu into a milder one, so you won’t die.”


With 120 million doses given each year in the U.S. alone, it is a “wonderfully safe” vaccine, whose only side effects can be a sore arm or, rarely, a day of fever. It cannot give a person the flu. “That’s an urban myth,” said Schaffner.


The vaccine is covered by insurance carriers and only costs about $ 30 out of pocket. But only about half of all children are immunized.


Advocacy efforts by the nonprofit organization Families Fighting the Flu were part the gradual change of the CDC recommendation toward universal immunization.


About 100 American children die each year from the flu, according to its executive director, Laura Scott. “It’s devastating.”


“The more people who get vaccinated, the less disease there is that spreads,” said Scott. “You can build a cocoon around your family. Even if you don’t have the infant vaccinated, you still have to vaccinate everyone around that baby.”


Julie Moise of Kansas City, Mo., lost her 7-month-old son Ian to the flu in 2003. He got sick just 10 days after he had received his first of two flu shots. Her other children had full doses of the vaccine and never got sick.


Moise, a 41-year-old flight attendant, said she was initially “unconcerned” when Ian was diagnosed with the flu by his pediatrician. But by the end of the first day, he was “panting.” The doctor reassured her that was normal in a child with a fever.


“His panting turned into more of a sigh and I thought that was a good thing,” said Moise. “But later the doctor told me that happens when people’s organs are shutting down.”


Moise, too, was bedridden with the flu and called her husband to come home from work and help. She called the doctor’s office again.


“Glen walks in the door and the phone rings — it’s the nurse,” she said. “He told her, ‘I don’t like his coloring, let’s take him to the emergency room.’ Then Ian stopped breathing.”


Moise, who is trained in CPR, attempted to save Ian while they rushed to the ER. They stopped at a nearby fire station and rescue workers also tried unsuccessfully to revive the baby. He died that afternoon at the hospital.


“The message is: First of all, take the flu seriously,” she said. “We didn’t think healthy children die of the flu. It’s a preventable disease … And it doesn’t discriminate. It can hit anyone.”


After their son’s death, the Moises founded Ian’s Rainbow Flu Foundation to raise awareness.


Those who have survived influenza say its effects can be devastating.


Luke Duvall, now 20, came down with the flu in October 2009, and it took him a whole year to recover fully.


One-third of his Atkins, Ark., high school was hit hard with that strain of the flu.


Duvall was rushed to the hospital by ambulance. He nearly collapsed in the shower because he couldn’t breathe.


“My blood pressure was so low that they couldn’t draw blood and I almost crashed in the ambulance on the road,” he said. “They had to pull over and stabilize me.”


The next morning he was flown to Little Rock, where he stayed for 34 days, much of the time in a coma and on a respirator. “At one time, they had 20 IVs pumping all kinds of things into me,” he said.


Duvall spent 17 days in rehab because he had lost 36 of his 157 pounds. “I had to relearn how to walk and how to drink and eat,” he said. “I had to relearn daily functions like dressing myself.”


All this, according to Duvall, because one student who boarded a football bus for a game had the flu and infected the entire team.


“He was a star athlete,” he said. “If he had just had the vaccine, all of this would have stopped. It would have ended there. You don’t just get it for yourself, but for those around you. It’s a cycle that keeps going.”


ABC News information specialist Nicholas Tucker contributed to this report.


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U.S. for-profit colleges spend big on marketing while slashing other costs












(Reuters) – Google‘s biggest advertiser is neither a bank nor a retailer.


It’s the for-profit University of Phoenix, which has recently been spending nearly $ 400,000 a day on ads, more than any financial firm or retailer, the traditional big spenders on online advertising, according to search analytics firm SpyFu.












That kind of spending may seem surprising coming from a college, but marketing has become vital for the university and its for-profit rivals as enrollments plummet and they fight back against a host of criticisms, including low job-placement rates.


Colleges such as University of Phoenix, the industry leader owned by Apollo Group Inc, will not only have to boost enrollments to reverse their fortunes, analysts say. They will also need to consider cutting tuition fees as well as continue to slash costs and take market share from rivals.


“I have witnessed several versions of this cycle but none as extreme as this,” said Trace Urdan, an analyst with Wells Fargo Securities, who has been covering the U.S. for-profit education industry for about 15 years.


“We are going to see more pointed efforts at marketing and more price competition in an effort to try to capture more market share both from each other as well as from traditional schools,” Urdan said.


Operators of other for-profit colleges, whose ranks include the Washington Post Co’s Kaplan business, DeVry Inc and ITT Educational Services Inc, are also boosting their spending on marketing and are among the 25 biggest advertisers on Google.


But no one is spending like the University of Phoenix, which doubled its spending on Google ads to about $ 380,000 per day on average between October 12 and November 12, compared with $ 170,000 a day in the previous month, according to SpyFu.


Increased marketing alone will not be enough to fatten fast-shrinking profit margins and increase enrollments, however. Lower tuition fees and increased specialization of the type of programs offered, along with further streamlining of operations, will also be necessary, analysts say.


Industry bellwether University of Phoenix, which offers courses at about 230 campuses as well as online, announced plans last month to shut about half its locations and cut 800 jobs in order to save about $ 300 million a year by 2014.


New enrollments in the Apollo system are down nearly 50 percent in the past two years. As of August 31, enrollment totaled about 328,000.


Career Education Corp, which owns American InterContinental University and the Le Cordon Bleu colleges, and Lincoln Educational Services Corp have also announced closures.


LOW-COST MODEL


The $ 25 billion industry, which typically serves adults looking for a career change or a program to enhance job skills, is reeling after government investigations revealed fraud related to financial aid, worryingly high student debt loads and low rates of graduation and job placement.


“Many for-profit colleges make decisions that prioritize their bottom line, even when those decisions limit their students’ opportunities for academic success,” a U.S. Senate report said earlier this year.


Tuition fees, and therefore profits, is one area under pressure as potential students need to be convinced to take out loans in an uncertain job market.


Apollo, whose stock has lost about 65 percent of its value this year, implemented a tuition freeze earlier this year and promised students it will not increase prices through the course of their programs.


Apollo is also looking at different cost models, with a view to serving segments of the population that it cannot serve with current University of Phoenix tuition prices.


“We have certainly seen a lot more competition at the lower end of the price scale, and that’s something we are focusing on,” Apollo spokesman Mark Brennar said, while declining to offer specifics.


Wells Fargo’s Urdan said it is likely that Apollo wants to compete in the low-cost end of the market by building a second brand, which it would likely do by acquiring another college rather than starting from scratch.


As colleges lower their revenue base by cutting tuition fees even as they spend more on marketing, lower margins could become the norm, analysts say. That has spooked investors already worried about sliding enrollments.


The S&P 1500 Education Services index has lost three-quarters of its value since April 2010, including a 50 percent decline in 2012.


Some for-profit colleges already differentiate themselves in the crowded higher-education market by offering programs in a particular field or by targeting students of a particular background, and that trend could accelerate.


American Public Education, for example, is known for enrolling those who work in the military and public services, while Universal Technical Institute offers programs related to the automotive industry.


For-profit colleges play up their links to employers to attract students who may otherwise opt for traditional or community colleges, said Rob Lytle, head of the education practice at advisory firm Parthenon Group.


“They are about getting people workforce employability skills, and I think they are going to be focusing tighter on that,” said Lytle.


(Reporting by A. Ananthalakshmi in Bangalore; Editing by Ted Kerr)


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