When news broke that Yahoo was going to sell off its Asian assets in a “cash rich” split, we heard that one of the companies Yahoo was interested in buying with its newfound cash was WebMD.It looks like Yahoo is going to dodge a bullet, and not buy WebMD, the company you use to self-diagnose illnesses.
This morning WebMD’s CEO stepped down, and it announced its results will come in at the low end of its guidance. 2012 revenue will be 2% to 8% below 2011 revenue.
WebMD also said it was taking itself off the block. It’s no longer for sale, which would suggest Yahoo can’t buy it. Presumably WebMD wasn’t happy with the bids it was getting. Its stock is tanking today, falling 30%.
The last thing Yahoo needs is a shrinking business. Especially one that’s still pretty expensive. Its market cap is $1.5 billion now.