The stock price of Weight Watchers doubled with the Oprah announcement.
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As someone who has publicly struggled with her weight for years, she will be participating in all Weight Watchers has to offer and will be using the mobile app and working with a professional coach. Wow, she must’ve been really impressed with the company’s performance and efficiency! Ms. Winfrey’s term on the company’s board ends in 2018.
Weight Watchers chiefs are aiming to use Oprah’s endorsement to transform the profile of the company from a diet firm to a lifestyle brand, “helping people lead a healthier, happier life”, according to President and CEO Jim Chambers.
While Weight Watchers has achieved notoriety for its rotating roster of celebrity spokespeople, Oprah Winfrey may represent the largest yet.
The presenter, who previously revealed she has lost 67lbs as part of her fluctuating weight, has admitted to emotional eating in the past. “She’s engaged her lifelong battle with weight, and she knows she’s not the only one”. In an interview with Barbara Walters as the show came to end, she told the TV interviewer that one of her goals was to still “make peace with the whole weight thing”.
A stamp of approval from Winfrey during her talk show days has meant a lot. To cap those losses short sellers have to buy shares of the stock if it starts to rally, and those purchases can feed into the rise in the stock’s price. A few of her locations have closed recently as the franchise attempts to see how best to serve its customers, she said.
In an instant, Winfrey just re-earned what she spent for the deal.
Through last Friday, Weight Watchers’ shares were down 73 percent for the year.
With an option of acquiring 5% extra stake, Winfrey will already be shedding USD43.2M to take over the 10% – nearly 6.4M shares – at USD6.79 each. At the same time, Winfrey will also have a seat in the company’s board of directors.
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The Associated Press reported that investors flocked to Weight Watchers shares in the wake of the news, sending the stock up 53 per cent pre-market trading to $10.36 on Monday morning.
