Oprah Winfrey Takes 10% Stake in Weight Watchers, Media mogul Oprah Winfrey is coming to the rescue of Weight Watchers International Inc., buying a 10% stake and joining the board of the struggling weight-loss company. The news sent Weight Watcher’s battered share price surging.
The 61-year-old billionaire, who over the years has chronicled her weight issues on her eponymous talk show and magazine, will for the first time become a member of Weight Watchers and appear in its advertising.
“I believe in the program so much I decided to invest in the company and partner in its evolution,” Ms. Winfrey said in a news release.Weight Watcher’s stock nearly doubled on the news and in recent trading was up $7.66 to $14.45. Even with that gain, the stock is still down about 40% so far this year, as Weight Watchers has struggled with dwindling membership. and a $2 billion debt load.
Ms. Winfrey’s endorsement and investment comes at a crucial time for the 52-year-old business. Revenue has fallen for six consecutive quarters. Earlier this year, the company said it would cut $100 million in costs and expand its efforts to reach the millennial generation, which increasingly turns to apps and other gadgets that track calories.
Ms. Winfrey is among the most powerful celebrities for influencing consumers’ purchase behavior, according to data from the Marketing Arm, an Omnicom Group-owned firm that ranks celebrity perception based on online polls. Ms. Winfrey ranks No. 4 out of 3,786 celebrities for influence, behind only Kate Middleton, Bill Gates and Taylor Swift. “She’s one of the very few that drives the needle for brands, ” said Matt Delzell, managing director of the Marketing Arm’s celebrity talent acquisition group.
Her appeal is strongest among women over the age of 40 in nonurban markets, said Allen Adamson, a branding expert and former chairman, North America of WPP’s LandorAssociates. “To some extent, what’s most important is to get the brand back on the radar,” he said. “If they can win Oprah’s core following that would be a good situation, and then tomorrow they can figure out how to go for younger consumers.”
The 61-year-old billionaire, who over the years has chronicled her weight issues on her eponymous talk show and magazine, will for the first time become a member of Weight Watchers and appear in its advertising.
“I believe in the program so much I decided to invest in the company and partner in its evolution,” Ms. Winfrey said in a news release.Weight Watcher’s stock nearly doubled on the news and in recent trading was up $7.66 to $14.45. Even with that gain, the stock is still down about 40% so far this year, as Weight Watchers has struggled with dwindling membership. and a $2 billion debt load.
Ms. Winfrey’s endorsement and investment comes at a crucial time for the 52-year-old business. Revenue has fallen for six consecutive quarters. Earlier this year, the company said it would cut $100 million in costs and expand its efforts to reach the millennial generation, which increasingly turns to apps and other gadgets that track calories.
Ms. Winfrey is among the most powerful celebrities for influencing consumers’ purchase behavior, according to data from the Marketing Arm, an Omnicom Group-owned firm that ranks celebrity perception based on online polls. Ms. Winfrey ranks No. 4 out of 3,786 celebrities for influence, behind only Kate Middleton, Bill Gates and Taylor Swift. “She’s one of the very few that drives the needle for brands, ” said Matt Delzell, managing director of the Marketing Arm’s celebrity talent acquisition group.
Her appeal is strongest among women over the age of 40 in nonurban markets, said Allen Adamson, a branding expert and former chairman, North America of WPP’s LandorAssociates. “To some extent, what’s most important is to get the brand back on the radar,” he said. “If they can win Oprah’s core following that would be a good situation, and then tomorrow they can figure out how to go for younger consumers.”
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