Orlando, FL 1/10/12 (StreetBeat) – The online health company WebMD (Nasdaq: WBMD) said on Tuesday that it had taken itself off the auction block, after failing to attract satisfactory offers from potential buyers.The company also said its chief executive, Wayne T. Gattinella, had resigned. He is being succeeded on an interim basis by Anthony Vuolo, the company’s chief financial officer, while the board looks for a permanent successor.
The announcement comes follows months of speculation about WebMD’s fate, after the company said last year that it had put itself up for sale. In its statement, WebMD said it had held discussions with several potential buyers and allowed them to conduct some due diligence. The company has a market value of $2 billion.
Among the juicier speculation of late was that WebMD could factor into a potential spinoff of Yahoo‘s (Nasdaq: YHOO) holdings in Alibaba of China and Yahoo Japan. As part of the requirements of any spinoff, the Asian companies would need operating assets — fully functional businesses — that they would essentially swap for Yahoo’s stakes.
Some investors had banked on WebMD being one of those operating assets. But that idea never had much basis in reality, and WebMD was not seriously considered to be part of that plan, according to a person briefed on the matter.
WebMD plans to remain independent, though its future as a stand-alone business is expected to be rough in the near term. The company said it expected to post lower revenue and higher expenses this year, as drug makers cut back on ad spending and competition increased from other Internet portals and social media sites.
WebMD said it expected to meet its previously published earnings guidance, but at the low to middle part of that range.
Shares in WebMD plunged nearly 28 percent in premarket trading.
StreetBeat Disclaimer
No comments:
Post a Comment