Weight Watchers is all about losing weight and it’s not about “fattening up.” But when Oprah Winfrey buys shares in Weight Watchers, they’re fattening up their wallet and market value.
For the last few years, this weight loss company’s stock has been sinking.
But its market value has soared right after the billionaire media mogul announced of taking a 10% stake.
Oprah has also been provided with an option of an additional 5% stake.
Weight Watchers International of Healthier Living
The company also announced that their brand’s goal is expanding.
Instead of just focusing on weight loss, they’re now emphasizing on happier and healthier living.
Believe in Weight Watchers
The news about “Oprah Winfrey buys shares in Weight Watchers” has sent the stock of WW up 105%. With that announcement, Oprah just made $70M in one day.
But before the announcement, the company’s value has lost 73% in 2015.
For Oprah, Weight Watchers has given her the right tools to start losing weight and keep it off permanently.
She believes so much in the company’s program that she decided to buy shares and has formed a partnership with them.
Now, analysts are saying that Oprah is going to use her influence to boost the company by promoting health-related initiatives, thereby, driving interest in the use of Weight Watchers products and services.
This is truly a free publicity to the company considering Oprah’s influence to the public.
Even though she has given additional 5% of the company each share, Oprah isn’t allowed to sell Watch Watchers stock for the first two years.
On the third year, however, she is allowed to sell up to 15% of her investment.
She has to wait up for five years before she could sell all of her shares.
That means, she has plenty of time promoting the company and improving its market value.
If its value improves, her shares will also improve.
Will you invest in Weight Watchers too? Are you using its tools to help you lose weight?