So you joined a weight loss program and really liked your experience. What do you do? Extend your membership and spread the word, right? Unless you are multi-millionaire glam gal like Oprah Winfrey, in which case you buy a 10% stake in the company.
That’s right, after an excellent first hand experience at Weight Watchers International, Oprah Winfrey bought a portion of the company’s holdings, needless to say, this star studded acquisition gave the company’s stocks a great boost. The firm’s shares soared to a whopping 90% early on Monday!
Oprah Won Over
With an option of acquiring 5% extra stake, Winfrey will already be shedding USD43.2M to take over the 10% – almost 6.4M shares – at USD6.79 each. Wow, she must’ve been really impressed with the company’s performance and efficiency!
This acquisition automatically gives the media mogul a ticket to the advisory board. And if she does go ahead and buy the extra 5%, Oprah will be the second largest shareholder in the company following Public Equities Advisor, which owned a humongous 51.5% stake as of June 30, 2015.
Star Studded Endorsement
Founded in 1963, Weight Watchers helps people get back in shape and become fit with their online subscription programs and coaching but in competition with free mobile health apps and technologic advancements, Weight Watchers had lost a huge chunk of clientele.
Adding Oprah Winfrey’s face, fame and guarantee to their name will not only boost their client base but make the whole model more realist because those who know Oprah, are well aware that her struggle for a healthy life and body has been real.