Wednesday, November 14, 2012

WebMD Exploring Sales Process: Exclusive

WebMD(WBMD) is exploring a sales process, according to a source with knowledge of the situation.

The medical information company is already in discussions with private equity firms, the source said, and has hired an investment bank, which is believed to be Credit Suisse.

See if (WBMD) is in our portfolio

WebMD shares were down 1% at $31.67 in afternoon trades, and they are off more than 35% year-to-date, but the stock has seen a 20%-plus bounce since scraping a 52-week low of $25.56 on Nov. 3. The company's current market capitalization sits at around $1.8 billion. WebMD could not be reached for comment after multiple tries. Credit Suisse declined comment for this story. Earlier this month, billionaire investor Carl Icahn raised his stake in the company to 9.5%, calling shares "undervalued from a long-term perspective." George Soros also acquired a 5.6% stake in WebMD in recent weeks. WebMD reported its fiscal third-quarter results on Nov. 2, beating Wall Street expectations by a healthy margin, but the company also lowered its full-year revenue guidance because of a reduction in marketing spend from pharmaceutical companies.At the time, the company forecast revenue of $555 million to $565 million, down from an August estimate of $580 million to $600 million. -->To submit a news tip, send an email to: tips@thestreet.com.

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