Investors flocked to Weight Watchers shares in the wake of the news, sending the stock up 85% to $12.55 at 11:20 a.m. Monday.
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While Winfrey’s involvement “is likely to resonate with Weight Watchers’ traditional over-50 female demographic, it’s unclear how the company plans to bolster its brand positioning with a younger audience”, he wrote in a research note.
She added that she believed in the Weight Watchers program so much that she made a decision to invest in the business and be a partner in its ongoing evolution. King recently revealed to fans that she was embarking on a weight loss journey of her own using Weight Watchers after stepping on the scale to a slight shock.
“I thought the 5 pounds made me too fat, not good enough to be at Don Johnson’s party”.
Weight Watchers worldwide, Inc.’s (NYSE:WTW) stock price has significantly increased 117.85% at $14.74 as of 2:38 EDT.
Under the agreement, Oprah purchased 10% of the company’s shares while also being given the option to purchase 5% more.
This video includes images from Getty Images.
The company’s shares soared 105 percent to close at $13.92 Monday.
Weight Watchers has been hit by dwindling subscriber numbers and the rise of weight management apps and fitness wristbands.
Weight Watchers has been in the midst of a slump as dieting has gone digital in recent years.
While her single-day earnings may be a giant sum to most, according to Forbes, it’s not much compared to her estimated worth of $3 billion.
“We are expanding our goal from focusing on weight loss alone to more broadly helping people lead a healthier, happier life”, said Weight Watchers President and CEO Jim Chambers said in a statement.
According to a filing with the Securities and Exchange Commission, Winfrey will promote the services and ideals of Weight Watchers with her name and face for five years – and she will never endorse any other weight-loss products within this period.
In contrast, Weight Watchers charges for its online food tracking.
In her new role, Winfrey will bring insight and strategy to program development and execution that reflects not only her own experiences as a member but also her unique ability to inspire and connect people to live their best lives, the release said.
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A few of us keep unflattering pictures of ourselves on the fridge as an incentive to lose weight.
