Everything she touches turns to gold as Oprah acquires 10% of Weight Watchers International igniting the weight loss company’s stock through the roof after plummeting in recent years. Not only is Big O able to acquire an additional 5% she is also hands-on with her investment in joining the Weight Watcher’s board to help over see the branding and new incentives implemented in their programming moving forward. She took to twitter for the announcement Monday!
— Oprah Winfrey (@Oprah) October 19, 2015
With ‘brand image’ being everything in our culture today, Weight Watchers has definitely upped the ante and has Oprah to thank. Oprah is ecstatic in saying, “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. I believe in the program so much I decided to invest in the company and partner in its evolution.”
Once the billionaire put her stamp of approval on the company investors ran to Weight Watchers shares within hours of the announcement. The stock went up 53% in pre-market trading and $10.36 on Monday morning alone. Winfrey snagged her shares at $6.79 and a total of $43.2 million according to Securities and Exchange Commission (SEC) filing.
It’s clear that this dominating mogul is committed to healthy living and promoting brands that are cohesive with hers while enabling everyone to get active in the conversation and jump on board as well. The CEO of Weight Watchers, Jim Chambers went on the record to agree in saying, “Through our conversations, it became clear that there is tremendous alignment between Oprah’s intention and our mission. 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.”
The short term limitations of the deal include that Winfrey (1) can’t sell any Weight Watchers stock for the first two years; (2) she can sell up to 15% in the third year of her investment; (3) up to 30% in the fourth year; and (4) up to 60% in the fifth year according to the SEC. In conclusion she will have the right to sell all of her shares in five years if she chooses to.
How many plan to jump on this bandwagon next?