Posted on Friday, 22nd January 2010 by admin
With a market cap of about $4 billion, WebMD Health Corp. (WBMD) shows that there is a big market for online health content. Keep in mind that nearly 70% of all adults in the US used the Net to get health care information (for 2009).
So, to capitalize on the financial opportunities, Everyday Health also wants to become a public company (the filing came this week).
Founded in 2002, Everyday Health has put together a portfolio of over 25 consumer health websites. Some include: www.EverydayHealth.com, www.RevolutionHealth.com, www.WhattoExpect.com, www.JillianMichaels.com, www.SouthBeachDiet.com, www.SparkPeople.com and www.Drugstore.com.
To bolster its content and trustworthiness, Everyday Health has been aggressive with partnerships. For example, the company has deals with the authors of best-sellers books like What to Expect When You’re Expecting (by Heidi Murkoff) and Winning By Losing (by Jillian Michaels).
In all, the sites attract roughly 25 million unique visitors per month and there are over 38 million registered users (with about 16,000 registration per day). While much of the content is free, there are still premium services. More than 1.7 million consumers have paid for these services so far.
Everyday Health’s large and diverse audience is certainly attractive for advertisers. Last year, the company featured more than 470 brands. And yes, Everyday Health has been growing quickly. For the first nine months of 2009, revenues increased from $46.7 million to $61.4. However, the company is still losing money, with a loss of $20.4 million in 2009.
The lead underwriters on the deal include Goldman Sachs (GS) and JP Morgan (JPM).
Tom Taulli advises on business tax preparation and resolving tax problems. He is also the author of a variety of books, including the including The Complete M&A Handbook. His website is at Taulli.com.
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Tags: Health, Health Checksin
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