Medscape stake keeps Eye vigorous on Web
Med site gets CBS's eye, Drkoop.com is stiff competish
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Medscape, which operates a site for medical professionals, will also receive a license to use the CBS trademark and logo.
The Medscape investment continues CBS' recent strategy to invest in new media companies.
CBS' portfolio of Internet investments includes stakes in CBS SportsLine, CBS SwitchBoard and MarketWatch.com.
"Along with sports and finance -- sectors in which we already hold Internet investments -- health is one of the leading areas of interest among Internet users," said Mel Karmazin, president and CEO of CBS Corp.
Medscape's medical Web site has 1.1 million registered users.
Other interests
CBS will work with Medscape to support the soon-to-be launched CBS.Medscape.com, which will become the exclusive consumer healthcare Internet site integrated into CBS News.
CBS News will contribute additional editorial content to the site and Medscape will develop online reports to compliment CBS' healthcare programming.
Medscape faces competition in the Internet health field from the site developed by former U.S. surgeon general C. Everett Koop that raised $84.4 million in an initial public offering last month.
CBS' investment in Medscape follows on the heels of Drkoop.com's deal to pay $89 million over four years to become the top health site on America Online.
Two other competitors, WebMD and Healtheon, have announced plans to merge.
Medscape will benefit from promotion on CBS' broadcast network and TV stations, as well as on CBS' outdoor billboard and radio properties, which are owned through Infinity Broadcasting.
In 1998, Medscape had $3 million in revenues, the lion's share coming from ad sales. The company filed a registration statement with the SEC in May to go public.
CBS has previously said it was considering a plan to capitalize on the high values placed on Internet companies by consolidating all of its Web investments into a separately traded public company.
