Healtheon signs $1bn content deal with News Corp

Global media giant, News Corporation, and online healthcare specialist, Healtheon/WebMD, today announced a strategic global alliance valued at over $1bn in stocks and services.

The companies plan to offer healthcare-related information across News Corp's TV, radio, cable, print and online mediums. Content will be aimed at both consumers and healthcare professionals.

Under the terms of the deal, News Corp will take a 10.8 per cent stake in the healthcare information provider and form an equal-share international partnership outside the US.

News Corp will purchase $100m in shares, provide $700m in branding over 10 years, invest $100m cash in the international venture, and sign a $62.5m five-year licensing agreement for WebMD daily broadcast content.

Peter Chernin, president and COO of News Corp, said the two companies have been working for a long time to create the ideal partnership. "This truly is a template for converged media companies," he said.

Jeff Arnold, CEO of Healtheon/WebMD, said: "This is the largest Internet media deal of all time. We will provide health-related content across all of News Corporation's assets."

News Corp's Chernin added that international strategy is still under discussion, but the partnership will roll out across the UK during the next 12 months.