WebMD CEO Resigns and Company Ends Its Search for a Buyer–Advertising from Pharma At Lower Levels
Posted Jan 11 2012 1:00am
The company has had a lot of success over the years and was pretty much the first of it’s kind in the health information business but competition along with social networks have kind of eaten away at that advantage. There have been other websites who have experienced the same thing out there. So with the class action lawsuit about over stating their financial status, the CEO says so long. BD
WebMD Health Corp. said Chief Executive Wayne T. Gattinella resigned, and the health-website operator called off a search for a buyer as it braces for weaker financial results this year.
The New York-based company is feeling pressure as drug makers curb spending on marketing amid generic competition for major products. WebMD had a bumpy ride last year, lowering its financial expectations a couple of times as it dealt with customer-related delays and cancellations.
Amid these pressures, the company said it terminated talks with potential buyers and a process to review a potential sale. WebMD said it has talked to "several potential acquirers" after starting to review strategic alternatives late last year.