Oprah takes $43.2 million stake in Weight Watchers, shares soar
Oprah Winfrey is taking a 10 percent stake in Weight Watchers and is joining the company board of directors.
| New York
Oprah Winfrey is taking a 10 percent stake in Weight Watchers for about $43.2 million and is joining the weight management company's board.
Weight Watchers International Inc. said in a filing with the Securities and Exchange Commission on Monday that as part of the agreement, Winfrey has given the company the right to use her name, image, likeness and endorsement for the company, its programs, products and services, subject to her approval. Winfrey also has the right to use Weight Watchers marks to collaborate with and promote the company.
Winfrey is buying about 6.4 million shares of Weight Watchers. The company's board expands from nine to 10 members with Winfrey's inclusion.
The five-year agreement has additional successive one-year renewal terms.
Weight Watcher's shares climbed almost 37 percent in premarket trading.
For years, Oprah has openly struggled with losing weight. In 1988, in one of her highest rated TV shows, she revealed she'd lost 67 pounds.
In a 2014 interview with Barbara Walters, she was asked to fill in the blank: "Before I leave this Earth, I will not be satisfied until I ..."
Oprah's answer: "... until I make peace with the whole weight thing."