(Pre-market trading, buoyed by news of Oprah‘s investment, lifted the stock by 37 percent.) Think of all the ways Winfrey can turn the place around: Weight Watchers-branded refrigeratooooooors!, a new book-club read on weight loss, a calorie-torching workout done by maniacally jumping on your couch. She will also join the company’s board.
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Oprah Winfrey just made a big bet on Weight Watchers.
Weight Watchers posted on Facebook, “We are thrilled to count one of the world’s most inspiring women among our #WWFamily and are so excited for what the future holds!”
According to the release, Oprah became an adviser as well as a regular member of the program who would “candidly share her experiences and perspective along the way”.
The share purchase agreement also provides Ms. Winfrey with the right to be nominated as director of the company for so long as she and certain permitted transferees own at least 3 percent of the company’s issued and outstanding Common Stock.
Winfrey is buying approximately 6.4 million shares of Weight Watchers at $6.79 per share.
Winfrey’s deal includes the option to buy an additional 5% of the company for $6.97 per share.
Winfrey has often spoken about her struggle with her weight and a thyroid problem that had led her to weigh 90kg (200lb) in 2008. The inspirational figure rose to larger fame with the syndicated talk-show she hosted for 25 seasons between 1986 and 2011.
Up to Friday’s close, Weight Watchers shares had tumbled 72.6% this year.
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The company will expand its business from focusing on weight loss to help people lead healthier lives, chief executive Jim Chambers said in a statement on Monday.
