Oprah Joins Weight Watchers and Becomes Part Owner and Board Member
Posted on October 19, 2015
Oprah Winfrey has joined the Weight Watchers program. She has also invested in the company and has purchased 10% of the company's outstanding shares. She will receive options to obtain an additional 5% of the company's fully diluted shares. Oprah is also joining Weight Watchers as a Board Member and adviser.Oprah says in the announcement, "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."
The news of Oprah's investment has sent the stock soaring. The stock doubled its value today. It has climbed from an opening around $7 a share to a closing around $14 a share. USA Today reports that the jump in the stock price made Oprah $60 million on paper today.
Reuters reports that Oprah will become the second largest shareholder of Weight Watchers after Invus Public Equities Advisors LLC if she buys 15% of the shares.
Oprah is not just investing in the company. She is also trying out the program herself and will be sharing her experiences and perspective along the way. The public sharing of her program is highly valuable for Weight Watchers as it keeps the program's name in the news.
Oprah said in a tweet, "I believe in the @weightwatchers program so much I decided to invest, join the Board, and partner in #wwfamily evolution."