WebMD Health Corp. said Thursday that it had stopped trying to sell itself because it didn't expect to get a high enough offer from potential buyers.
The health website operator said in a filing with the Securities and Exchange Commission that it was disclosing more information in response to questions from investors, including Icahn Partners LP, its largest shareholder.
Icahn's fund said on Wednesday that it had increased its stake in WebMD to 11.64 percent, from the 9.49 percent stake disclosed in early November. Icahn opposes a sale. He says WebMD should use its cash to buy back as much as $1 billion in stock instead of selling itself.
Icahn often presses companies to make changes or sell themselves after buying their shares. He owns stakes in several drug companies, as well as consumer products maker Clorox Co., among others.
In December WebMD adopted a "poison pill" shareholder rights plan that would go into effect if any company or investor acquires a 12 percent stake in the company. Kensico Capital Management is also close to that limit, with an 11.55 percent stake in WebMD.
WebMD's revenue has been hurt by growing competition from ad networks and social sites, and because its drug company customers are cutting back on their marketing spending as they deal with patent expirations. On Jan. 10, the same day WebMD announced it was no longer considering a sale, it said its profit and revenue would fall in 2012 and that its CEO was resigning.
WebMD had held discussions with several private equity firms in 2011. It said Thursday that it had decided not to pursue a sale because it expected that any offers made would be below its stock price at the time.
The company's shares were then worth close to $40.
Shares of WebMD rose 61 cents, or 2.3 percent, to $26.91 in late afternoon trading Thursday.