Icahn buys 9.49 percent stake in WebMD

AP News
Posted: Nov 03, 2011 7:16 PM
Icahn buys 9.49 percent stake in WebMD

Billionaire investor Carl Icahn has purchased a 9.49 percent stake in online health information provider WebMD Health Corp.

Documents filed with the Securities and Exchange Commission show Icahn and affiliated funds bought 5.3 million shares for $103.4 million on Thursday.

Shares in the New York-based company are down 46 percent since hitting a high of $58.17 in May. They fell 79 cents, or 2.5 percent, to $30.36 after hours Thursday after losing $2.60, or 7.7 percent, to end the regular session at $31.15.

In July, WebMD cut its annual revenue forecast and said several factors were hurting its business, including lower license revenue and consumer products companies cutting their marketing spending.

About 99 percent of WebMD's revenue in the most recent quarter came from advertising and sponsorships on its website.

On Wednesday, the company said its net income climbed 4 percent in the third quarter as its ad revenue increased, but its results fell well short of Wall Street's expectations.

WebMD also lowered its revenue estimates for the fourth quarter.

A call to WebMD after hours Thursday was not immediately returned.