"tendering 5% of the shares would result in a 5 % "
Only if the purchase price was $0.00.
At $48.50/share, the nearly $100 million purchase price will take a bite out of their cash hoard.
In more detail....
"The following directors and executive officers of the Company have advised us that, as of August 8, 2014, they intend either to tender in the Offer or to sell in the open market during the pendency of the Offer up to the respective maximum numbers of shares indicated: Mark J. Adler, M.D., a member of our Board of Directors, up to 12,000 shares; Peter Anevski, Executive Vice President and Chief Financial Officer, up to 40,000 shares; Kevin M. Cameron, Special Advisor to the Chairman and a member of our Board of Directors, up to 90,000 shares; Neil F. Dimick, a member of our Board of Directors, up to 20,000 shares; Michael B. Glick, Executive Vice President and Co-General Counsel, up to 18,000 shares; James V. Manning, a member of our Board of Directors, up to 32,000 shares; Herman Sarkowsky, a member of our Board of Directors, up to 20,000 shares; David Schlanger, Chief Executive Officer, up to 35,000 shares; Stanley S. Trotman, Jr., a member of our Board of Directors, up to 12,000 shares; Douglas W. Wamsley, Executive Vice President, Co-General Counsel and Secretary, up to 30,000 shares; and Steven Zatz, M.D., President, up to 65,000 shares. "
"So what ??" Taken at face value it shows that most of the insiders would prefer receiving $48.50/share now for up to 5% of their shares than owning those shares going forward.
Not sure how the selling would fit in your conspiracy theory. The sales at the tender price will benefit the insiders only if the share price is below $48.50 after the tender is completed.
Only wygod is exercising then selling - the rest are pure sells.
"t is Mr. Wygod’s current intention to sell up to approximately 150,000 shares in connection with such integrated plan and to exercise a sufficient number of stock options as part of such integrated plan to meet that plan objective."
…and of course one could say they did it as a service to us the people: The more shares the company can buy back, the more the remaining shareholders should benefit.
And management can always give themselves some new options…
They exercised stock options to sell shares in the open market, such depressing the price and inciting shaky shareholders to give up shares in the tender.
Manipulation, yes, but legal.
"Several of our directors and executive officers, including Martin J. Wygod, the Chairman of our Board of Directors, have advised us that, as of August 8, 2014, they intend either to tender up to a specified amount of shares beneficially owned by them in the Offer or to sell such shares in the open market during the pendency of the Offer. "
One would think that tendering 5% of the shares would result in a 5 % increase in the stock price after the tender is complete ...
Sharecare is the only serious and big competitor to WebMD. It's a private company getting ready for a big event. The only way to buy Sharecare is by buying MARK (Remark Media) as MARK owns 6% of Sharecare
Hi tracey, I always appreciate your opinion. I am more optimistic than you, because I’m expecting an earnings explosion. Why else would they have the tender instead of continuing with the re-purchase? According to Schlanger, “the tender provides and opportunity to buy a more significant amount of shares at one point of time”. So they are in a hurry, because once they have signed up the new orders, the stock is not going to be that cheap.