Walmartcare? If Walmart Buys Humana, It Could Happen
Healthcare marketing competition has been heating up in the cloud with Amazon, Google, Facebook and Salesforce. On Thursday, the world learned Walmart may be entering the terrestrial fray by acquiring healthcare insurer Humana.
The Wall Street Journal’s article about the possible acquisition says Humana is valued at $37 billion and would be a record-breaking deal for Walmart. The retail giant is Amazon’s main e-commerce competitor and Walmart is already one of the largest pharmacies in the country.
However, it’s important to note for healthcare marketers wary of the competition from Walmart that lawmakers are already taking a look at extending short-term insurance options, as well as possibly weakening Amazon’s powerhouse e-commerce status. President Donald Trump tweeted this week about possibly taking a closer look at Amazon’s taxes and its package delivery deal with the U.S. Postal Service — a deal Trump believes costs taxpayers rather than creating a profit for the USPS. At the same time, Facebook is having its own troubles, with congressional and FTC investigations into a data brouhaha related to Trump’s election campaign.
So even as the retail and tech giants make moves into healthcare marketers’ territory, they may find stumbling blocks along the way.
In the meantime, as Target Marketing sister publication, Dealerscope, reported on Friday:
“The combined Walmart-Humana company would become the single-largest health insurer from an annual revenue standpoint. According to a Wall Street Journal analysis, Walmart’s $500 billion annual revenue combined with Humana’s $54 billion would be a little more than twice that of the next closest competitor — the recently announced CVS-Aetna merger ($246 billion). Also interesting to note is that, if it goes through, this would be the largest acquisition move by Walmart. Ever. In 1999, Walmart spent $10.8 billion to acquire U.K. retailer Asda Group. Humana’s market capitalization is right around $37 billion. Walmart’s, by comparison, sits at around $264 billion.”
What do you think, marketers?
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Related story: Healthcare Insurers to Compete With Amazon, Etc.