Health Sites Merging.

http://www.nytimes.com/2008/10/03/business/03deal.html?ref=business

In a deal that threatens WebMD’s dominance in the health care space, Revolution Health Network plans to announce on Friday that it has merged with Waterfront Media, a publisher that owns several health Web sites.

“We think we have the wind at our back, and can pass them,” said Steve
Case, Revolution’s founder, referring to WebMD. He said the combined company could “really be the new leader in this category, which is a hot category.”

My Response: Many managers would see this as a negative opportunity cost for Steve because it seems as if he giving up his company. But to the contrary, Steve has probably undergone a variety of pro and cons to this decision. By merging with Waterfront Media, this may increase Steve's capital, and eventually satisfy his competitive hunger to surpass WebMD. Steve is definitely thinking about the future of his company.