CBS buys 20% of Rx.com

Med sites, older auds profitable match, Eye thinks

By MARC GRASER

CBS on Thursday said it will buy 20% of online pharmacy Rx.com for $37.5 million worth of advertising and promotion on CBS' properties over the next four years.

Austin, Texas-based Rx.com sells nonprescription drugs and plans to offer prescription drug services in the fall.

The network's majority-owned Infinity Broadcasting will get part of the investment.

CBS will also get warrants to buy 700,000 more shares of Rx.com, as well as a seat on the company's board.

Deal broadens CBS' interest in health-related Web sites, which it believes it can profit from based on the older-skewing audiences its network attracts.

The company has also acquired a 35% stake in Medscape, a leading site aimed at doctors.

E-tailer Amazon.com recently purchased Drugstore.com.