Business
WebMD Health files for IPO
NEWS IN BRIEF — Posted June 6, 2005
New York-based WebMD Health Holdings Inc., a subsidiary of Elmwood Park, N.J.-based WebMD Corp., on May 12 filed with the Securities and Exchange Commission for an initial public offering of stock.
According to the SEC filing, WebMD Health Holdings will change its name prior to completing its IPO. But the new name, which hasn't been decided upon yet, will include WebMD.
The proposed IPO on the Nasdaq National Market would raise up to $50 million.
The spin-off of WebMD Health would effectively separate WebMD's two major forms of business: the health information content portals of WebMD Corp.; and Medscape, the physician online information portal.
WebMD Health's portal business earned a net income of $6.5 million on sales of $134.1 million last year.
The parent company would hold onto subsidiaries that process health care transactions, under the WebMD Envoy name, and sell practice management software, under the WebMD Practice Services name.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/06/06/bibf0606.htm.
