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Reader's Digest in Net deal
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June 23, 1999: 1:11 p.m. ET
Publishing company to invest $13M in online health site WebMD
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NEW YORK (CNNfn) - Reader's Digest Association Inc. said Wednesday it will invest $13 million in online health information site WebMd Inc. as part of its plan to expand its Internet presence.
Under terms of the deal, WebMD will develop a Reader's Digest Web site devoted to healthcare. In turn, content from the publishing company's flagship Reader's Digest magazine and books will be featured on WebMD's site.
WebMD also will provide print copies of the magazine to its physician subscribers, purchasing at least 3 million copies over five years.
In February, Pleasantville, N.Y.-based Reader's Digest announced plans to invest $100 million in its existing Web sites as well as new Internet ventures.
"The Internet is a key element in our strategy to expand in the areas consumers care most deeply about, including health," CEO Thomas O. Ryder said Wednesday.
Reader's Digest has the largest circulation of any magazine in the world, with a readership of nearly 100 million people.
Terms of the agreement dealing with site development and the exchange of editorial content are pending a definitive agreement, which is expected soon, Reader's Digest said. The new health site is expected to be launched this fall.
The company's shares were trading down 3/8 at 38-1/8 early Wednesday afternoon.
Privately held WebMD, an Atlanta-based startup firm whose investors include Microsoft Corp. (MSFT), Excite Inc. (XCIT) and Intel Corp. (INTC), announced plans last month to merge with health data management firm Healtheon Corp. (HLTH) in a $7.9 billion stock swap intended to create the leading health care Web site. 
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