Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Healtheon Corporation (HLTH) -- Ignore unavailable to you. Want to Upgrade?

To: Dan Clark who wrote (297)	11/8/1999 6:45:00 PM
From: Susan Saline	Read Replies (1) \| Respond to of 861

Mon Nov 8 HLTH [external] News Corporation may invest $1 billion in Healtheon-WebMD - at CNET News.Com rd.yahoo.com*http://www.news.com/News/Item/0,4,84-1431961,00.html?tt.yfin..txt.ni News Corporation may invest $1 billion in Healtheon-WebMD by Bloomberg News Special to CNET News.com November 8, 1999, 3:05 p.m. PT NEW YORK--Rupert Murdoch's News Corporation is close to investing $1 billion in Healtheon-WebMD, a move that would enable the internet-based health and information company to distribute and promote its services through cable television, sources familiar with the situation said. The transaction is expected to be announced in about two weeks, though final details are still being worked out and talks could founder, the people said. Murdoch, News Corporation's chief executive, has been directly involved in the talks, which have been conducted during the past six weeks in London, New York, and Los Angeles, sources said. News Corporation intends to invest $150 million in cash for a 10 percent stake in Healtheon-WebMD, valuing its shares at about $50, or about 50 percent more than Friday's closing price, sources said. Healtheon gained 9.06 to 42 before trading was halted with five minutes remaining. About half the gain came in the last 15 minutes of the session after the plan was reported. News Corporation also will invest $150 million in Healtheon-WebMD International, a new affiliated company, in return for a stake of about 50 percent, sources said. News Corporation will make the remaining $700 million of the investment by contributing a health cable network and promotion on its Fox network and other media outlets, sources said. In addition, Softbank, a Tokyo-based investor in Internet companies, will invest $100 million in the international affiliate, sources said. A spokesman for Softbank said the company had no comment. The transaction won't be announced until Healtheon completes its merger with WebMD. That transaction is slated to close Thursday, sources said. Healtheon was founded by Jim Clark, the Internet pioneer who helped create Netscape Communications. Healtheon first sold shares to the public in February. Healtheon is buying closely held WebMD for $10.3 billion to form the largest online company linking doctors with insurers, suppliers, and patients. The combined company also will acquire all the outstanding stock, options, and warrants of closely held Greenberg News, which provides medical news and analysis over its Medcast Networks. Officials at News Corporation, Healtheon, and WebMD weren't immediately available for comment. Copyright 1999, Bloomberg L.P. All Rights Reserved.