Oprah Signs Up For Weight Watchers

The surge in the stock was on the back of reports that Oprah Winfrey would be paying $432 million for a 10 percent stake in the company and would be joining the board of the company which is being seen as a huge positive.

Investors flocked to Weight Watchers shares after the announcement, sending the stock up 86 percent to $12.60 at 10:25 a.m. Monday.

Winfrey is buying about 6.4 million shares of Weight Watchers at $6.79 per share.

In addition to her role as a board member, Winfrey, who has long shown an interest in health issues and dieting programs, will serve as an adviser to the company.

However, she struggled to keep the weight off and in 2011, she admitted to veteran US broadcaster Barbara Walters one of her life goals was to “make peace with the whole weight thing”.

Weight Watchers President and CEO Jim Chambers said that the company has widened its horizon and added focus to wellness alongside weight loss.

Winfrey will help broaden Weight Watchers in the marketing aspect, there is no doubt that Oprah will help reach more costumers in a faster way.

Oprah Winfrey has partnered with, and become part owner of, Weight Watchers. After the news, shares in the weight-loss company doubled to close at $13.92 on the NYSE on 19 October, making the billionaire celebrity richer by about $45 million. She’s a Member on her own personal journey toward success, and she believes so much in what we do and our mission that she wants to work with us to inspire people around the world to lead healthier and more fulfilling lives.

Weight Watchers has been shedding subscribers as more free apps, such as My Fitness Pal, have entered the market enabling people to keep calorie counting diaries.

In other words, Oprah’s financial contribution will be a welcome one, but her true value in this transaction is in her influence. Everyone gets a Weight Watchers membership!

Winfrey also runs the Oprah Winfrey Network, a joint venture with Discovery Communications. In 2014, about 800,000 people attended Weight Watchers meetings, which was a decrease from the 1.3 million people in 2011.