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The Oprah Touch: Weight Watchers Skyrockets After Icon Takes Stake

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The Oprah Touch: Weight Watchers Skyrockets After Icon Takes Stake

  • Shares of Weight Watchers International, Inc. (NYSE: WTW) soared higher by more than 90 percent on Monday, but are still lower by more than 40 percent from a year ago.
  • Investors and traders heavily bought the stock after Oprah Winfrey acquired 10 percent of the company and will join the board of directors.
  • According to a press release, Winfrey was "compelled by the proven Weight Watchers program."
  • Shares of Weight Watchers surged higher on Monday after the company announced in a press release it will partner with Oprah Winfrey.

    As part of the agreement, Winfrey acquired a 10 percent stake in the company and will join the firm's board of directors, with an option to acquire an additional 5 percent.

    By early Monday afternoon, the stock was trading higher by nearly 97 percent at $13.36. However, the stock is still significantly lower from its 52-week high of $29.84. Investors and traders heavily bought the issue with the hopes that a powerful icon like Winfrey can re-invigorate the company's slumping sales.

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    'Compelled' By The Weight-Loss Program

    According to Weight Watchers' press release, Winfrey was "compelled by the proven Weight Watchers program" and will introduce new initiatives to "broaden the company's mission to prioritize overall health and wellness."

    "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," said Oprah Winfrey. "I believe in the program so much I decided to invest in the company and partner in its evolution."

    "Weight Watchers and Oprah Winfrey make a powerful combination," said Ray Debbane, chairman of the board of directors for Weight Watchers. "Oprah is a force of nature in connecting with people on a very personal level to live inspired lives. This partnership will accelerate our transformation and will meaningfully expand our ability to impact many millions of people worldwide."

    Image Credit: Public Domain

    Posted-In: Health And Wellness Oprah Winfrey Ray Debbane Weight WatchersNews Trading Ideas Best of Benzinga

     

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