Why Is Carl Icahn Exiting WebMD Health Corp (NASDAQ:WBMD)?

Posted by Lynn Eisler October 22, 2013 0 Comment 1268 views

On Monday, WebMD Health Corp (NASDAQ:WBMD) said that its largest stakeholder, Carl Icahn is offloading his entire stock to the company. WebMD Health Corp (NASDAQ:WBMD) said that it will be buying-back its stock from the billionaire for an amount of $177.3M or $32.08/share for the 5.5M shares that are held by Icahn and his associates. That price matches-up with the closing price of the stock on Friday. Carl Icahn controlled a 12.1% stake in WebMD Health Corp (NASDAQ:WBMD).

Once this deal closes, Kensico Capital Management, the hedge-fund manager will be the largest shareholder of the company. The company has bought-back 10.8M shares since June-end and will have 40.4M shares on the market after buying back Icahn’s shares. The company stated that it will have $54M left on the share-repurchase authorization.

Monday’s trading

In Monday’s trading, WebMD Health Corp (NASDAQ:WBMD) rose by 10.54%. The opening price of the shares was $32.04, which climbed to an intraday high of $36.22 and dipped to a close of $35.46. Approximately 2.03M shares exchanged hands on Monday while the average volume of 0.927M shares were traded over a period of 30 days. The 52-week low of WebMD Health Corp (NASDAQ:WBMD) shares is $13.13 and its 52-week high is $36.22. The company has a market capitalization of $1.79 billion.

About the company

WebMD Health Corp (NASDAQ:WBMD) is a health information-services provider. Its services are provided to physicians, consumers and other healthcare-professionals, employers and health-plans via its private and public online portals, mobile-platforms and various health-focused publications. The company engages physicians, consumers and other healthcare-professionals across the multi-screen experience and allows them to enable health-decisions anywhere and at anytime.

The online healthcare-information, decision-support communications services and applications that it provides allows consumers to get detailed information on wellness and health topics or on certain condition or disease to store individual healthcare-information, to assess personal health-status information.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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