HLTH Corporation announced plans to merge with its WebMD Health subsidiary in a move thatcould make the combined company an attractive takeover target for largerInternet companies such as Google.
HLTH announced that it would merge into its 84%-owned subsidiary,WebMD, in a $2.3 billion deal. Under terms of the transaction, each outstandingshare of HLTH common stock will be converted into shares of WebMD common stockand $6.89 in cash. The transaction is expected to close in the second or thirdquarter of 2008.
WebMD’s senior management team is expected to continue tolead the organization under current president and CEO Wayne Gattinella.
Meanwhile, WebMD Health Corp., which provides healthinformation through its website, said profit soared in the fourth quarter of2007 due to a hefty tax gain and strong demand for online services.
WebMD’s revenue for thefourth quarter and full year excluded about $1 million and $4 million,respectively, related to its offline professional medical reference andtextbook publication business, which was sold on Dec. 31.
From the April 01, 2008 Issue of MM+M - Medical Marketing and Media
