Oprah Buys 10 Percent Of Weight Watchers
By Tankboy in Arts & Entertainment on Oct 19, 2015 8:25PM
Oprah Winfrey/Getty Images
Oprah Winfrey is buying 10 percent of Weight Watchers and joining their board of directors.
AdAge reports the deal is in the works in an effort to help the popular weight loss program regain its footing amid slumping memberships and sales. Oprah confirmed the news in a Facebook post.
The Weight Watchers' program, based on points relating to the caloric content of meals, was long popular because the routine was easy to digest, and support came in the form of fellow dieters who would meet regularly both online and off. However with the advent of so many similar (and more importantly, free) programs, the once popular company has seen its stock fall 73 percent this year alone.
News of Winfrey's buy-in has already seen the company's stock surge 72 percent today. We suspect her worth to the company will far outstrip her financial contribution, thanks to her status as one of the key cultural tastemakers in the U.S. today.
The money people seem to agree with that opinion, with John Faucher of JP Morgan telling AdAge, "We believe that partnering with Oprah is a very powerful proposition, given her following and the fact that she will publicly share her experiences."
In other words, Oprah's financial contribution will be a welcome one, but her true value in this transaction is in her influence.