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E-Health » E-Health Market
 

E-Health Market Overview and Internet Health Acquisitions

Since it's hyped early days in the late 1990's, as exemplified by the rise and fall of DrKoop.com, Internet Health and medical sites have matured into one of the major internet verticals. The major commercial players include the obvious ones such as WebMD, Yahoo Health, Microsoft Health, etc., and some other players trying to increase their profile: e.g. NBC. Government sites have a large presence, but are not funded by online advertising, such as: NIH, FDA, CDC, etc.

Google is largely absent on a content basis, having launched its "Google Health" in 2006 as mainly an additional indexing of other website's medical content, rather than Google itself having its own medical content area. However, Google's share of advertising in the health and medical space should not be underestimated as Google's partnership network includes many of the larger medical websites (including WrongDiagnosis.com).

2007 Online Health and Medical Acquisitions

  • February 2007 – Microsoft acquired MedStory (undisclosed financials)

2006 Online Health and Medical Acquisitions

  • December 2006: WebMD acquired Subimo for $59M. Subimo had revenues of $4.1M, pre-tax income of $790,000 for the 6 months ended June 06.
  • November 2006: HealthMedia acquires MySelfHelp.com.
  • September 11, 2006: WebMD acquired Medsite for $41M. Medsite had revenues of $13.4M, with a net loss $1.9M for 2005.
  • June 13, 2006: WebMD acquired Summex for $30M plus $10M earnout. Summex had revenues of $6M, with breakeven profitability.
  • May 2006: Mdlinx acquired by So-Net M3, a Japanese company affiliated with Sony, for an undisclosed sum.
  • March 2006: NBC Universal acquires iVillage (large women’s web site and a public company at the time) for $600M with a multiple of about 8 times revenues and 300 times trailing earnings.
  • January 2006: WebMD acquired EMedicine.com for $25M. Emedicine had revenues of $6M, with breakeven profitability.
  • 2006: Microsoft acquired Azyyxi (consumer health portal).
  • Emdeon launches its IPO for WebMD, into a P/E ration that has soared to a P/E ration first of 400, then 690.
  • Jan 2006: Digitas acquisition of Medical Broadcasting Company for $30M.

2005 Online Health and Medical Acquisitions

  • November 2005: WebMD acquired theheart.org for $19M.
  • January 7, 2005 iVillage acquired Healthology, Inc. for $17.5 million.
  • April 8, 2005, iVillage acquired HealthCentersOnline, Inc. For $12.2 million.
  • WebMD acquired Conceptis for $19M in 2005
  • WebMD acquired HealthShare for $29M in March 14, 2005
  • GE HealthCare acquired IDX Systems for $1.2B.
  • Per-Se acquired NDCHealth for $665M.
  • Wolters Kluwer (book publisher) acquired certain assets of NDCHealth for $382M.
  • DST Systems acquired HealthPlans Systems for $324M.
  • Merge Technologies acquired Cedera for $393M.
  • Revolution Health acquired six companies in 2005 (venture capital provided by an all-star list of investors including Steve Case from AOL fame, Carly Fiorina from HP, etc.): Extend Benefits LLC, ConnectYourCare, Inc. ( http://www.connectyourcare.com ), MyDNA Media, 1-800-Schedule, Simo Software, Inc., Wondir, Inc. – Presumably that took some digesting, since Revolution didn’t launch until 2007.

2004 Online Health and Medical Acquisitions

  • WebMD acquired MedicineNet in Dec 2004 for $17M plus $15M earnout.
  • WebMD acquired RxList.com (drugs site) in Dec 2004 for $5M plus 2 x $2.5M earnout. Other Earlier Acquisitions
  • Vitacost acquired DrKoop.com for $186,000, yes that’s thousands not millions, for DrKoop that at one time had a market capitalization exceeding a billion. Presumably some liabilities were assumed.
  • Healtheon and WebMD merge, to become what is now called WebMD.
  • 1996: Healtheon is started by ex-Netscape founders.

Major Online Health and Medical Advertising Startups

  • Adviware - WrongDiagnosis.com
  • Drugs.com
  • NetDoctor/NetDoktor - European health websites.
  • Revolution Health
  • Healthline.com – originally one of the many Internet bubble firms that bled through more than $20M of venture capital funding in the late 1990’s, before relaunching again with new funding.
  • Waterfront Media launched everydayhealth.com.
  • Various smaller players.
 

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