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Icahn and Soros Load Up on WebMD

October 25, 2011 | About:

Both George Soros and Carl Icahn have loaded up on shares of Internet health portal WebMD (NASDAQ:WBMD) in the past few days.

Billionaire Carl Icahn bought a 7.94% stake in WBMD. Icahn said the shares were undervalued from a long-term perspective, according to a regulatory filing.

Soros Fund Management disclosed massive buying in WBMD today. Previously, Soros Fund Management reported owning 75,000 shares of WebMD. Now, Soros owns 3.47 million shares. Soros Fund Management now owns 5.6% of the entire company.

If you have searched for a medical problem online, chances you landed on site owned or operated by WebMD. The company is the dominant player in the online healthcare content space with over 2 billion page views per quarter. It must be noted that a click in the healthcare field generates a premium as advertisers are willing to pay top dollar for traffic referrals from WebMD.

The $2 billion company can hardly be considered a value stock with a P/E of over 25. However, Icahn and Soros may be interested in selling the company to another content portal such as Microsoft (NASDAQ:MSFT), Yahoo (NASDAQ:YHOO) or AOL.


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