Dec

6

GM and Chrysler ready to agree on a part merger

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General Motors and Chrysler were open to a merger if the U.S. government mandated it as a condition for providing the emergency financing. They state that this would help them survive into 2009.

GM Chief Executive Rick Wagoner and Chrysler Chief Executive Bob Nardelli were testifying at a U.S. Senate Banking Committee hearing held to consider a request for $34 billion in aid from Detroit’s three automakers. The comments appeared to revive the chances for a merger analysts have said would slash tens of thousands of U.S. auto jobs as a combined Chrysler-GM cut overlapping factories and headquarter operations in Detroit.

Nardelli said Chrysler’s analysis showed that a merger between GM and Chrysler could reduce costs of the combined operations by between $8 billion and $10 billion.

Wagoner, who has asked for $18 billion in emergency government funding for GM, agreed that a merger with Chrysler presented an opportunity for ‘significant cost savings.’ He said GM was willing to consider such a strategy if it were a condition for receiving federal funds.

Oct

6

Revolution Health to be Acquired by Waterfront Media

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Revolution Health, an online health venture is set to merge with Waterfront Media as part of a $300 million deal.

Revolution Health is part of Revolution LLC and owned by AOL founder Steven Case. After the merger, the new company will operate as Waterfront Media. Based in New York, Waterfront Media runs several health websites jointly known as the Everyday Health Network into which the properties of Revolution Health will be folded after the acquisition is complete. Even though neither party formally announced the terms of the deal, sources close to the negotiations pegged the acquisition at $300 million.

According to Media Metrix of ComScore Inc, Everyday Health Network and Revolution Health are respectively ranked at number two and three among the most popular health-related websites even as WebMD continues to maintain its leading position in the rankings with more than 17 million visitors in July. However the combined websites of Everyday Health Network as well as Revolution Health are expected to draw in over 20 million unique users per month.

After the merger, the new company will be operating a total of around 24 websites, some of which constitute the most popular health portals on the Internet like RevolutionHealth.com, HealthTalk.com, EverydayHealth.com as well as niche sites like SouthBeachDiet.com.