From beloved celebrity to major investor could summarize the idea behind Oprah buying a 10 percent stake with Weight Watchers, the nationwide program designed to help people reduce body weight.
While Oprah Winfrey seems motivated by her own success with Weight Watchers and the company’s plans to expand their portfolio, Weight Watchers certainly got fatter checks after the announcement.
With stocks floundering for a while, Weight Watchers saw a major shift after the beloved celebrity announced she is buying a 10 percent stake on Monday, October 19th. Weight Watchers is in for a shift of fortune. On the same day, the company’s stocks closed at over 13 dollars, increasing by a dramatic 105 percent. Compared to the 73 percent stock value loss just this year, that is certainly good news.
Good news follow for those who would like to become part of the Weight Watchers program. The portfolio will be expanded with healthy living programs, as well as improvement of the quality of life programs. The weight loss program, a hallmark of the company, will be kept.
During the announcement, Oprah Winfrey motivated her decision:
“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”.
In addition to the 10 percent buy in stocks, Oprah might receive an added option of buying 5 percent more in Weight Watcher. Additionally, she would join the board as well.
The TV icon has bought her shares at 6.79 dollars each, according to the records of the Securities and Exchange Commission. Winfrey’s total investment rises to 43.2 million dollars. A vested player in multimedia and brand expansion, as well as her numerous outings related to health, weight loss and healthy living are set to bring Weight Watchers back on the floating line.
It might be that Oprah Winfrey is the lucky draw for the company known to roll celebrities as the Weight Watchers image. Some analysts agree with the fact that Oprah buying a 10 percent stake with Weight Watchers is bound to push the company up the ladder.
Others are more reluctant. In their views, after the initial excitement, what Weight Watchers needs to do if it wants to survive is to rethink business strategies.
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