Let me explain...
After a series of stumbles throughout 2011, the board of directors at health care information provider WebMD (Nasdaq: WBMD) realized that the company may be better off in the hands of a larger digital information company.
An announcement at year's end helped to give fresh life to shares, as they quickly rebounded toward the $40 mark.
But few companies were interested in buying WebMD at that price, let alone at the 20-40% premium that shareholders typically expect in a buyout offer. The company's board announced that plans to sell the company were off the table in the near-term, sending shares quickly to fresh multi-year lows. Eventually, this company dropped off the front page, and its shares fell below $15 as investors moved on to other, timelier opportunities.
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