BILLIONAIRE media mogul Oprah Winfrey is capitalising on her well-publicised battle with the bulge, with a huge investment that’s already seen shares soar.
The 61-year-old is paying about $US43.2 million ($59.3 million) for
a 10 per cent stake in Weight Watchers and is joining its board.
On word of the deal, the weight management company’s shares are up almost 48 per cent in premarket trading, proving the entertainment titan’s continued market power.
Weight Watchers International Inc said in a filing with the Securities and Exchange Commission on Monday that as part of a five-year agreement, the former talk show host 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. She will also make personal appearances on the company’s behalf.
For her part, Winfrey has the right to use Weight Watchers marks to collaborate with and promote the company, its programs, products and services.
The philanthropist will consult with Weight Watchers and help in the development, planning and execution of its program and related initiatives.
“We are expanding our purpose from focusing on weight loss alone to more broadly helping people lead a healthier, happier life,” said Weight Watchers President and CEO Jim Chambers said in a written statement.
The Oprah Winfrey Network founder is buying approximately 6.4 million shares of Weight Watchers at $US6.79 per share.
She will also receive options to buy an additional five per cent of the company’s fully diluted shares.
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