WebMD Corp. announced last week that Roger Holstein was leaving the company as chief executive officer of WebMD Health, the online information and portal services division, citing personal reasons.
The company named Wayne Gattinella, current president of WebMD Health, as co-CEO of the unit. He will also remain president of the unit. David Gang, formerly the executive vice president of the AOL Products division of America Online, will join Gattinella as co-CEO of WebMD Health.
WebMD also announced it was going forward with plans to make an initial public offering of a 10% to 14% interest in WebMD Health and planned to file an initial registration statement with the Securities and Exchange Commission within several weeks. The unit posted $33.6 million in revenue, or 11% of the company's total revenue, for the first quarter, up from $26.3 million, or about 10% of total revenue in the first quarter of 2004.
The company also said it posted a 72% increase in first-quarter net income to $9.8 million, or 3 cents per share, compared with net income of $5.7 million, or 2 cents per share, in the year-ago quarter.