HLTH Corp., WebMD Merger Axed; Current Credit Crunch Is Culprit
HLTH Corp. (HLTH) and WebMD (WBMD) today terminated their merger agreement–the latest casualty of the current credit crunch.
HLTH owns an 84 percent stake in WebMD; but WebMD was to be the surviving company. Terms of the deal had called for HLTH shares to be converted into 0.1979 shares of WBMD plus $6.89 in cash.
Martin Wygod, chairman of both companies, said in a statement that “in the current economic environment, it is important for a growth company like WebMD not to be encumbered by $650 million in long-term debt that would be coming due in 18 to 36 months.”