Moving to fulfill company chairman Thomas O. Ryder's promise that the Internet will be an important part of Reader's Digest's future, the publisher last week announced a wide-ranging alliance with WebMD, a health-care Web site. Under the agreement, WebMD will help develop a new RD health site that will be launched this fall. The site will feature content from RD's flagship magazine, specialty magazines and health-related books.
Other aspects of the deal include an agreement for WebMD to purchase a minimum of three million copies of Reader's Digest magazine over the next five years to give to WebMD's subscribers. The two companies will also cross-promote the site.
As part of the deal, RD has invested $13 million in WebMD and will have a seat on the company's board until its planned merger with Healtheon, another health-care Internet company, is completed.
