Online Health Sites to Merge

October 6th, 2008 | Sources: NY Times, Wall Street Journal

Two large online health information companies, Waterfront Media and Revolution Health have agreed to a $300 million merger that threatens the sector’s dominant player, WebMD.

Brooklyn-based Waterfront Media was formed in 2002. It operates consumer health sites including EverydayHealth.com, WhatToExpect.com and SouthBeachDiet.com. It is believed to turn a profit on revenues of $50 million. Washington D.C.-based Revolution Health was founded last year. Its consumer health sites include RevolutionHealth.com, CarePages.com and HealthTalk.com.

According to comScore, WebMD had 17.3 million unique visitors in July, 2008, the highest traffic in the space. That same month, EverydayHealth.com had 14.7 million visitors and the Revolution health sites had 11.3 million, good for second and third place overall.

The newly combined entity is projecting more than 20 million unique users and more than 3 billion page views per year. A Waterfront press release suggests the new entity will offer advertisers a “unique opportunity to target consumers across the entire spectrum of online health and wellness.”

Waterfront’s co-founder and CEO Benjamin Wolin will run the new entity, while Revolution Health’s CEO and Chairman Steve Case joins its board.

Before starting Revolution Health, Mr. Case co-founded AOL which merged with Time Warner at the peak of the Internet bubble. Time Warner now wants to dump AOL, which has been hurt by declining advertising revenue.

WebMD is also expanding. It recently announced plans to acquire QualityHealth.com for $50 million.


 

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