HealthCentral has a network of about 30 sites on specific health topics, such as migraine, pain management, Alzheimer’s and they also own Drkoop.com, healthscout.com websites, among others. The websites that they own, tend to have very long names like myDiabetesCentral.com, HighBloodPressureConnection.com, and MyDepressionConnection.com.
Traffic numbers are: $7M unique visitors with 30M page views monthly.
From PaidContent, we hear that they have raised $50M led by IAC (InterActice Corp, a public company listed on NASDAQ), and carried forward previous investors like Sequoia and Carlyle.
IAC acquired, and I quote:
a major (though still minority) stake in HealthCentral.
A major, but minority stake: could be anything from 25% to 49%, I guesstimate that it is closer to 35%, giving the guesstimated valuation of Health Central at $150M, with an error bar of 50M.
You probably think that I am going to crib about the valuation again or try to contort arguments to justify the valuation. Nope!
Healthcentral has launched a series of TV health specials, hosted by Dr. Dean Edell and now syndicated on over 70 TV stations including major market stations like WCBS-New York, KABC-Los Angeles, and WLS-Chicago) with a potential viewership of over 60M.
So it seems that the investment is made to implement some of the multimedia strategy of Web, radio and TV, and considering that it is number two health related network (after WebMD), the numbers seem to make sense.
The HealthCentral Network was acquired in 2005 by Polaris Ventures, Sequoia Capital, The Carlyle Group and Allen & Company, so it is a nice turn around.