Tencent Partners with WebMD to Deliver Trusted Health Content to Over 1 Billion WeChat Users

VCBeat (WeChat ID: vcbeat) has learned that, according to a July 24 report by The Wall Street Journal, Tencent Holdings Ltd. (00700) has reached a content licensing agreement with U.S. healthcare services provider WebMD to deliver WebMD’s healthcare content to over 1 billion users on WeChat.

loomberg Newsoomberg NewImage source: Bloomberg News

The content licensing agreement reached between Tencent and WebMD includes WebMD articles, videos, and slide decks covering medical and health topics, such as the side effects of chemotherapy and the symptoms of appendicitis. The two parties did not disclose the financial terms of this collaboration.

WebMD stated that this agreement will enhance the quality of healthcare information available to Chinese consumers, with related content scheduled for release by year-end and accessible on Tencent’s QQ messaging platform.

According to VCBeat, WebMD Health was founded in 1996. As a leading internet-based medical and health information provider in the United States, it is headquartered in New York. WebMD has established an online channel for patients and physicians to access and exchange medical information. Its medical information and services are industry leaders, earning it the reputation as“The Yahoo of the Healthcare Industry”。

WebMD Health’s business comprises the WebMD information platform and the Medscape platform. The WebMD information platform, similar to China’s 39.net, primarily targets patients, whereas the Medscape platform is mainly geared toward clinicians and other healthcare professionals, renowned for providing timely clinical medical information. Last July, WebMD Health Corp. was acquired by U.S. private equity giant KKR for approximately $2.8 billion, equivalent to $66.5 per share.

Jeremy Schneider, Senior Vice President of Corporate Development and Global Strategy at WebMD, stated, “Today, tens of millions of users on WeChat are creating groups focused on specific medical information, whether for cancer or diabetes. While there is extensive communication and discussion among these users, reliable information remains scarce.”

Zhang Meng, General Manager of Tencent’s Medical Information Product Center, stated in an email that Tencent would translate and adapt WebMD content to suit Chinese users, with a focus on diseases more prevalent in China, such as lung cancer. “There are significant differences between China and the West in terms of demographic characteristics, medical practices, and culture,” Zhang wrote. “It is crucial that we take these differences into account during the localization process.”

Tencent has invested in dozens of healthcare companies both domestically and internationally. Mark Natkin, Managing Director at research firm Marbridge Consulting, stated that since April 2012, his firm has tracked at least 30 healthcare-related investments, with the actual number likely being higher.

WebMD’s new service will compete with a growing number of Chinese healthcare companies that not only provide medical information but also offer online tools to help Chinese consumers access medical care. For example, on the WeDoctor platform, users can consult physicians and schedule appointments online. Backed by Tencent, WeDoctor is set to list in Hong Kong later this year. Ping An Good Doctor, which offers online diagnosis and physician appointment services, went public in May this year.

In China, healthcare is a large and growing business.A report released by consulting firm McKinsey shows that, by 2020 In 2026, China's healthcare expenditure is projected to reach1 $1 trillion.Liang Aizhong, Chair of the Healthcare Practice, Greater China, at Bain & Company(Philip Leung) stated that, with the populationAgingAcceleration of the trend,The demand for chronic disease management, such as for diabetes, is continuously increasing; however, the healthcare system does not provide sufficient primary care physicians to guide patients toward appropriate treatment options and specialist consultations.