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BabyCenter confirms spin-off possibility

The eToys subsidiary announces that it is considering a possible spin-off of its health care marketing division, Consumer Health Interactive.

eToys subsidiary BabyCenter announced today that it is considering a possible spin-off of its health care marketing division.

The announcement came just hours after CNET News.com reported it had obtained an internal memo in which BabyCenter cofounder Mark Selcow said the company would "most likely" spin off Consumer Health Interactive (CHI).

In the announcement, BabyCenter said the company was looking at a number of possible alternatives for CHI. In addition to spinning off the division, BabyCenter said that it was also considering both a "strategic transaction" with another health care company and keeping CHI in-house.

eToys acquired BabyCenter and CHI in April in a $150 million deal. Among CHI's customers are Blue Shield of California, Oxford Health Plans, and Sharp Healthcare.