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