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KKR buying WebMD for $2.8 billion

Dan Primack, author of Pro Rata

Private equity giant KKR today announced that it will acquire health information site WebMD for around $2.8 billion (including debt), or $66.50 per share. That would represent a 20.5% premium to Friday's closing price, although it's nearly flat from where WebMD was trading 15 months ago. Large sellers would include BlackRock and Blue Harbour Capital, an activist investment firm founded by onetime KKR partner Clifton Robbins. KKR plans to merge WebMD with existing portfolio company Internet Brands.

  • Why it matters: This deal reflects how the torturous federal debate over healthcare policy — including drug pricing — has caused pharma companies to pull back on advertising. WebMD formally launched the auction in February, saying that it anticipated a significant revenue slowdown.
  • Bottom line: "WebMD, which was founded in 1996 and primarily offers articles on health and healthcare, generated $705m in revenues last year. Almost 80 per cent of its sales were derived from advertising and sponsorship, with the bulk coming from the pharmaceuticals, biotechnology and medical device industries." –Adam Samson, FT

Go deeper

Ina Fried, author of Login
14 mins ago - Technology

Tech's race problem is all about power

Illustration: Eniola Odetunde/Axios

As problematic as the tech industry's diversity statistics are, activists say the focus on those numbers overlooks a more fundamental problem — one less about numbers than about power.

What they're saying: In tech, they argue, decision-making power remains largely concentrated in the hands of white men. The result is an industry whose products and working conditions belie the industry rhetoric about changing the world for the better.

Go deeper (3 min. read)Arrow
Jennifer A. Kingson
14 mins ago - Economy & Business

Mayors fear long-lasting effects of COVID-19

Data: Menino Survey of Mayors; Chart: Axios Visuals

U.S. mayors tend to be an optimistic bunch, but a poll released Thursday finds them unusually pessimistic about prospects for post-pandemic recovery.

Why it matters: In a survey of mayors of 130 U.S. cities with more than 75,000 residents, 80% expect racial health disparities to widen, and an alarming number predict that schools, transit systems and small businesses will continue to suffer through 2021 and beyond.

Go deeper (1 min. read)Arrow
Sam Baker, Danielle Alberti
34 mins ago - Health

Coronavirus hospitalizations top 100,000 for the first time

Expand chart
Data: The COVID Tracking Project, Harvard Global Health Institute; Cartogram: Danielle Alberti and Andrew Witherspoon/Axios

More than 100,000 Americans are now in the hospital with coronavirus infections — a new record, an indication that the pandemic is continuing to get worse and a reminder that the virus is still very dangerous.

Why it matters: Hospitalizations are a way to measure severe illnesses — and severe illnesses are on the rise across the U.S. In some areas, health systems and health care workers are already overwhelmed, and outbreaks are only getting worse.

Go deeper (1 min. read)Arrow

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