On Monday, news broke out that 61-year-old media mogul Oprah Winfrey, bought 6.4 million shares of Weight Watchers at Friday’s closing price of $6.49 in a deal that was worth more than $43 million.
She is a hero of another kind!
Aside from Oprah’s $70M one-day earnings on Monday after the deal was announced, the weight loss company is hopeful after a resurrection of its stocks.
Monday’s closing price more than doubled.
“Through our conversations, it became clear that there is tremendous alignment between Oprah’s intention and our mission,” said Weight Watchers president and CEO Jim Chambers.
We believe that her remarkable ability to connect and inspire people to realize their full potential is uniquely complementary to our powerful community, extraordinary coaches and proven approach.”
Alex Fuhrman, senior research analyst with investment firm Craig-Hallum, said Winfrey’s stake could influence consumers, and ultimately, Weight Watchers’ bottom line.
Fuhrman makes an emphasis that any $43 million investment in Weight Watchers, regardless if it came from Winfrey or another investor, would have sent the stock higher.
However, he maintains that the endorser’s influence can greatly impact whether the stocks remain high.
And Weight Watchers certainly need the stocks to remain high and even go higher seeing as it has been struggling with declining sales and a looming debt of $144 million.
Oprah is considered a very trusted name and brand advocate by consumers and she has a reputation by consumers who would only endorse a product if she really believed in it…In that sense, it could bring a lot of interest to Weight Watchers. She has a tremendous fan following.”
Definitely bringing on Oprah as a spokesperson of sorts with $43 million of cash puts to bed concern that it can pay its April 2016 debt.”
Well we all know that if the ‘queen of daytime talk show,’ is talking about it, it is certainly courting millions of attention.
From spirituality and faith, to simple bed sheets, if it comes out of Oprah’s mouth, a whole lot of folks are taking it in.
(Oh the power of one voice)
Morningstar analyst RJ Hottovy said he was “intrigued” by the potential marketing opportunities with Winfrey’s various television, print, and digital properties, but is waiting to hear more from the New York-based company.