Two of the Web's largest health information site publishers have revealed plans to merge, creating a heavyweight challenger to market-leading WebMD LLC. In a deal reportedly valued at $300 million, health site publisher Waterfront Media Inc. will acquire Revolution Health Network, a company founded by former AOL chairman Steve Case, to form a new, profitable company said to have $100 million in annual revenues.

Revolution Health -- a division of Revolution LLC, the parent company run by Case -- will become a stakeholder in Waterfront Media, which has taken in funding from a variety of venture firms. Existing stakeholders in Waterfront include Rho Ventures, Scale Venture Partners, Foundation Capital, NeoCarta Ventures, BEV Capital, Time Warner Investments and Village Ventures.

Upon Revolution's establishment in 2005, the company took investments from individuals including former Netscape CEO Jim Barksdale, onetime Secretary of State Colin Powell, and ex-Fannie Mae CEO Frank Raines. Former Hewlett-Packard Co. [HPQ] chief executive Carly Fiorina is also an investor.

Waterfront looked to Credit Suisse for financial advice, while Morgan Stanley advised Revolution Health. Pillsbury Winthrop Shaw Pittman LLP provided counsel to Waterfront, while Cooley Godward Kronish LLP served as Revolution's law firm. -- Paul Bonanos

See press release from Waterfront Media and Revolution Health
For more, see The New York Times