It doesn’t seem all that long ago that WebMD was the Internet health behemoth that grew and merged and acquried its way to a billion-dollar company, then deflated after the tech stock crash to a shadow of its former self – all the time reigning as the biggest player in a not-so-lucrative market.
In yet another sign that we could be heading for a tech stock bubble, WebMD’s two biggest competitors, Revolution Health and Waterfront Media, which runs the EverydayHealth websites, are merging to form a new online health behemoth (it’s such an evocative word, I’m going to use it twice in two paragraphs) that is claimed to be bigger than WebMD. The deal is reportedly worth US$300 million.
Meanwhile, in the small and fragmented Australian market, players such as MSN Health and Virtual Medical Centre scramble for a pool of consumer advertising that may or may not be worth $1 million a year. You would think there was an opportunity there for someone who can attack this in a sensible way?