Oprah Winfrey, Losing Pounds and… Money With Weight Watchers

Economy Nilgun Salim
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According to USA Today, Oprah Winfrey’s Weight Watchers shares literally collapsed, losing more than $117 million dollars.

The numbers are disappointing not only for Oprah but for the entire American group, after 66% of their shares crashed in less than a month.

Apparently the unexpected occurred after Weight Watchers replaced their CEO. But with this major change, the value of the company suffered most.

According to the American publication, after the TV mogul came on board, Weight Watchers was undervalued, losing $1,2 billion dollars since their peak hit.

The producers believed Oprah’s involvement will catapult them in the entrepreneurship elite. Apparently, their plans were ruined, after the company’s revenue became flat entering in a slow-growth mode. The company lost $10.8 million in the first quarter.

The former talk-show host is not the only investor affected by the disappointing numbers registered in the last months on the stock market. The private investment firm, Artal, is the largest shareholder with 29.4 million shares or 46% of shares outstanding. The company has lost $543.5 million in paper wealth since the peak of the stock but is still up $82.4 million since Winfrey joined.

Shares were down another 68 cents, or 6.6%, to $9.68 Tuesday after the company said it is replacing its CEO for three years James Chambers at the end of the month although the price is still above the $6.79. The media mogul owns 10% of the American group. Weight Watchers collapsed with almost 70 per cent since their apogee from November.