WebMD Health Corp. will not go forward with its plan to acquire Marketing Technology Solutions; instead, the companies announced they entered into an advertising services agreement.
WebMD, which in September had entered an agreement to buy the Jersey City, N.J.-based media company in a $50 million cash deal, instead acquired a minority preferred interest in Marketing Technology Solutions, which owns QualityHealth.com. Financial terms of the agreement were not disclosed. Under the advertising services agreement, WebMD will provide QualityHealth.com with limited access to certain parts of its inventory, according to a news release.
A WebMD spokeswoman declined to say why the companies backed out of the planned acquisition. Last month, WebMD and its parent, HLTH Corp., ended their plan to fold HLTH into WebMD. The companies cited the current economic climate and a desire to keep WebMD unburdened with debt as reasons for the termination of that merger. -- by Jean DerGurahian