WebMD Appoints David Schlanger As CEO; To Buy Back Shares

(RTTNews) - WebMD Health Corp.(WBMD), a provider of health information services, Monday said it has appointed David Schlanger as its chief executive officer. He has been serving as interim CEO since May 2013. The company promoted Steven Zatz to president, who is currently executive vice president, Professional Services. The firm also announced a share repurchase of up to 5 million shares.

Schlanger has also served in other senior roles at WebMD and its predecessor companies for more than ten years prior to that time.

Martin Wygod, chairman of the company said, "With David's leadership, we are well positioned to build on the current momentum and maintain our focus on the development and implementation of the strategies necessary to diversify our revenue base and capture the opportunities arising from the rapidly changing healthcare landscape."

In early May, WebMD announced its Chief Executive Officer Cavan Redmond will be leaving the company, after a stint of less than a year. Redmond a former Pfizer Inc. (PFE) executive had taken over the reins of struggling WebMD on May 31 last year.

Zatz will assume responsibility for the firm's consumer and professional websites and services. Zatz has been with WebMD and its predecessor companies for more than ten years. As Executive Vice President, Professional Services, he was responsible for the company's professional websites and services including its flagship site for healthcare professionals, Medscape.com.

WebMD, which provides medical news, information and advices through websites, has been struggling lately after all major drug companies cut their advertising budgets, due to patent expiration and delayed product developments. WebMD generates majority of its revenue from advertisements and sponsorships.

Separately, the company said it has commenced a tender offer to purchase up to 5 million shares of its common stock, representing about 10 percent of the approximate 50.4 million common shares outstanding, at a price of $34 per share.

The tender offer will expire on September 10, unless extended by the company. WebMD will use a portion of its cash and cash equivalents to fund the tender offer.

WBMD is currently trading at $33.75, up 1.05 percent.