WebMD to Buy-Back 5,000,000 Stock Shares at $34.00 Per Share

In a press release, WebMD Health Corp. (Nasdaq: WBMD) announced that it has issues a tender offer for the re-purchase up to 5,000,000 shares of its common stock at a price of $34.00 per share. The company will use a portion of its approximately $1 billion in cash and cash equivalents to fund the tender offer.

According to the statement, the stock buy-back by WebMD represents roughly 10% of the 50.4 million shares outstanding. Unless the company extends the tender offer, the offer to re-purchase the stock is good until the expiration at 5:00 p.m., Eastern, on Tuesday, September 10, 2013.

The terms of the ‘Offer to Purchase’ is being distributed to stockholders. As part of the offer, the shareholders will have the opportunity to tender some or all of their shares at a price of $34.00 per share.

If, as a result of the tender offer, fewer than the target of 5 million shares is not reached, Web MD will purchase shares tendered by those stockholders owning fewer than 100 shares, without proration, and all other shares tendered will be purchased on a pro rata basis, according to the press release.