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Waterfront, Revolution to Merge
Deal Could Challenge Rival WebMD
Wall Street Journal
By Shara Tibken
October 3, 2008
Online health-information companies Waterfront Media and Revolution
LLC's Revolution Health Network agreed to merge in a deal that
could potentially threaten WebMD Health Corp.'s No. 1 spot.
The private companies -- which expect more than 20 million unique
users and three billion pages views a year as a combined company
-- said Waterfront Media's Everyday Health Network will now include
RevolutionHealth.com and all of its online properties, totaling
24 Web sites. The company will operate under the name Waterfront
Media.
In August, WebMD reported it had 48.4 million unique users per
month and total traffic of 1.1 billion page views during the second
quarter, increases of 20% and 24%, respectively, from a year ago.
WebMD agreed in February to merge with HLTH Corp., which owns 84%
of WebMD.
Waterfront Media Chief Executive and co-founder Benjamin Wolin
will be CEO of the combined company, while Revolution Health Chairman
and CEO Steve Case -- co-founder of AOL -- will join the Waterfront
Media board along with another board member from Revolution Media.
Doug McCormick, former CEO of Lifetime TV and iVillage, will remain
Waterfront's chairman, while Mike Keriakos will remain president.
Financial terms of the deal -- which is expected to close by mid-October
-- weren't disclosed.
Waterfront Media was founded in 2002, and its network of more
than 20 sites includes EverydayHealth.com, WhatToExpect.com and
SouthBeachDiet.com. Revolution Health, which launched in 2007,
operates sites such as RevolutionHealth.com, HealthTalk.com and
CarePages.com.
Revolution LLC was created by Mr. Case, the co-founder of AOL,
which became known as Time Warner Inc. after the Internet-service
provider bought the media giant at the height of the Internet bubble.
Time Warner has been exploring ways to unload AOL, whose network
advertising has slowed in recent months.
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