WebMD Sale Off the Table, Shares Drop 27%

After announcing the resignation of CEO Wayne Gattinella, WebMD Health Corp. (NASDAQ:WBMD) said today that it had ended discussions on a possible sale of the company.

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The company also said that net income will be “significantly lower” in 2012 as drugmakers cut back on marketing and competition from social networking sites increases.

WebMD was undergoing due diligence by potential acquirers when it decided to break off talks, the company said in a statement. one of those companies is said to have been Yahoo (NASDAQ:YHOO), which was interested in owning WebMD as part of a tax-efficient asset swap with Alibaba and Softbank Corp.

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To contact the reporter on this story: Emily Knapp at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com