Time for Google to acquire Web MD

The time has come for Google to take a serious look at purchasing WebMD. I thought WebMD was a great buy a couple of years ago when the stock was in the low 20’s.

In the last 12 months the shares have reached a high close to 60. Over the last few months the stock has been languishing in the low 30’s and the sharks are circling the waters (Soros and Icahn). A Private Equity firm has acquired nearly 6M shares or 11% of the stock.

Fundamentally, it is very sound firm. Over the last 9 months it has generated nearly half a billion in revenues and close to 44M in profits (eps)

In the hands of the right company, WebMD can have a very bright future.

Google is the company that needs to acquire WebMD.  They are essentially in the same market – that is, providing information.

Both Google and Microsoft have struggled with their personal health care product.

The WebMD imprimatur/brand along with the nearly limitless resources from Google makes the concept of Electronic Health Record (EHR) – defined here as, a collection of Electronic Medical Records very reachable.

The centralized availability of health information along with medical information would place Google or someone like Microsoft as a critical player in the upcoming changes in the health care delivery process and continuum.

A premium on the current price of $31 and 58M shares leads to a purchasing price around 3B which is a reasonable entree into the health care IT field which is project to exceed 40B by 2014.

My vote is for Google to take over WebMD.