HLTH, WebMD end $2.31 bn merger deal

NEW YORK: HLTH and its subsidiary WebMD Health say they have canceled a $2.31 billion cash-and-stock based merger because of recent turmoil in the financial markets.

The boards of directors of both companies favored ending the deal, the companies say. ``The boards of directors of HLTH and WebMD believe that, in the current economic environment, it is important for a growth company like WebMD not to be encumbered by $650 million in long-term debt that would be coming due in 18 to 36 months,'' said Martin J. Wygod, chairman of HLTH and WebMD, in statement.