Back to top

KKR Agrees to Buy WebMD Health (WBMD) for $2.8 Billion

Read MoreHide Full Article

Shares of WebMD Health skyrocketed 19.59% in premarket trading on Monday following news that private equity firm KKR & Co. (KKR - Free Report) will buy the online health publisher for $2.8 billion.

KKR will pay $66.50 per share in cash, a 20.5% increase from WebMD’s closing price on Friday.

The deal will bring together WebMD’s websites, such as WebMD.com, Medscape.com, and MedicineNet.com, with those owned by KKR under its Internet Brands unit, including DentalPlans.com and AllAboutCounseling.com.

“We believe that this transaction will provide additional flexibility and resources to deliver increased value to consumers, healthcare professionals, employers, and health plan participants,” said WebMD Chief Executive Steven Zatz.

Founded in 1996, WebMD is best known for its health information services websites, such as WebMD.com, that includes a symptom checklist, pharmacy information, drug information, and more. The company’s sites attracted 179.5 million unique users per month according to WebMD’s fourth quarter 2016 earnings conference call.  

In February, WebMD said it would explore strategic alternatives, including possible sale of the company, after advertising paid for by pharmaceutical companies slowed.

The deal is expected to close in the fourth quarter of 2017.

Want to learn more about mergers and acquisitions? Check out our recent podcast on the topic below!

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


KKR & Co. L.P. (KKR) - free report >>


More from Zacks Stocks in the News

You May Like