Oprah just made a big bet on Weight Watchers
Oprah Winfrey just made a big bet on Weight Watchers.
In a press release on Monday, the weight-loss assistance company said she joined its board and purchased a 10% stake of shares outstanding. She also bought options to acquire an additional 5% of fully diluted shares.
According to the release, Oprah became an adviser, as well as a regular member of the program who will "candidly share her experiences and perspective along the way".
"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" she said in the statement. "I believe in the program so much I decided to invest in the company and partner in its evolution."
Weight Watchers shares surged 38% in premarket trading.
The stock is down 72% year-to-date and over the past year. It has struggled to lift sales and increase its membership. One Duke University study found earlier this year that the company faced strong competition from rivals. And, Credit Suisse analysts said free weight-loss apps were a better deal for some consumers than Weight Watchers membership.