Updated from 12:19 p.m. EST to provide updated share prices, additional financial guidance on WebMD, and investigation against Perfect World.
NEW YORK (
(WBMD - Get Report)
shares were down sharply Tuesday, off 27.7% to $26.55 after
the company announced the end of its sale process
, the resignation of its CEO and expectations for 2012 sales to be lower than 2011.
WebMD had been discussing selling itself to potential suitors, but the company's board decided to stop the process. No reason was given why the sale process was stopped.
In addition, CEO Wayne T. Gattinella stepped down immediately, with CFO and COO Anthony Vuolo taking his place. WebMD also said it expects 2012 sales to be 2% to 8% lower than fiscal year 2011.
WebMD said it anticipates 2012 expenses will increase by as much as 5% to 8% over 2011 levels, due in large part to investments in areas such as "personalization, mobile, social, international, new content areas and new advertiser products and services."
shares were up 16.7% to $10.28 after the Chinese gaming company vehemently denied the recent allegations that CEO Michael Chi purchased a 20% stake in
without disclosing it to the
Securities and Exchange Commission
. There were also accusations that 178.com purchased ads from Perfect World at above-market rates, and no mention of the ties between the companies was made.
Perfect World is one of China's leading social gaming companies, similar to the
Data center operator
(EQIX - Get Report)
shares were up 2.1% to $110.10 on heavier than normal volume.
worldwide IT spending to be $3.8 trillion in 2012, up 3.8% from 2011.
Tech stocks were generally rising in context with the broader
, which is up just over 1%.
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Written by Chris Ciaccia in New York
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