Oprah Buys 10% Of Weight Watchers, Saves Company
Oprah Winfrey, the billionaire media mogul, bought 10% of Weight Watchers International in order to save the long-running weight-loss program.
Oprah Saves Weight Watchers
Winfrey’s acquisition of 10% of Weight Watchers sent the company’s stock soaring Monday morning, reported CNN Money. In recent years, Weight Watchers’ business was trending downwards in a slump. Needing a boost, the diet company plans to expand its business model to focus on overall health and happiness.
Winfrey, who is taking a seat on Weight Watchers board of directors, has reaped the benefits of the company’s program and hopes to usher it into a successful second life.
“Weight Watchers has given me the tools to begin to make the lasting shift that I and so many of us who are struggling with weight have longed for,” said Winfrey in a statement. “I believe in the program so much I decided to invest in the company and partner in its evolution.”
Weight Watchers CEO Jim Chambers couldn’t be happier to have the media mogul onboard with the company, believing that she’ll help take it to the next level.
“Through our conversations, it became clear that there is tremendous alignment between Oprah’s intention and our mission,” Chambers said in a statement. “We believe that her remarkable ability to connect and inspire people to realize their full potential is uniquely complementary to our powerful community, extraordinary coaches and proven approach.”
Winfrey’s investment of roughly $43.2 million ($6.97 per share) caused the Weight Watchers stock to jump up 86% to $12.60 Monday morning. Prior to her investment, the company’s stock had lost 72% of its value this year.
Per Winfrey’s deal, she has the option to buy an addition 5% of the company at $6.97 a share. For the first two years, she cannot sell any of her Weight Watchers stock. In five years, she could sell all of her shares.