WebMD close to sale to private equity firm for $2.8B
KKR & Co. is nearing an all-cash deal to purchase WebMD Health Corp—including its eponymous flagship website for health professionals and curious consumers—for a reported $2.8 billion.
Private equity firm KKR owns Internet Brands Inc., which has popular websites such as DentalPlans.com, VeinDirectory.org and AllAboutCounseling.com.
KKR will pay $66.50 per share, a premium of 20.5 percent to WebMD's closing of $55.26 on Friday, July 21. By 11:50 a.m., July 24, WebMD's shares were trading at $65.98. Many analysts reported deal price was higher than expected.
"We are pleasantly surprised by the premium valuation, given the flat growth expected," said Cowen & Co analyst Charles Rhyee, in a letter quoted by Reuters. "We think the valuation may imply that we and consensus may be too conservative."
Read more about the deal here:
Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.