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Weight Watchers surge 170% thanks to Oprah
Move over Uncle Carl, that “Icahn lift” of yours has nothing on what Oprah recently did:
“Winfrey announced on Monday morning that she had agreed to purchase a 10% stake in Weight Watchers International and had signed a collaboration deal to promote the diet company and its services. The announcement has caused shares of Weight Watchers to soar. With the stock changing hands for around $18, Winfrey has single-handedly generated $700 million in stock market value in two days, given that the company has 63.6 million shares outstanding following the Winfrey deal.
Shares of Weight Watchers are up about 170% since they opened for trading on the New York Stock Exchange on Monday morning. Weight Watchers’ stock doubled in value on Monday and rose by another 30% or so on Tuesday.”
Winfrey, who reportedly bought her stake for $43.2 million, now has $110 million in paper profits thanks to an option allowing her to purchase 3.5 million more shares for just $6.79 each. Not bad for just two days work.
Guess its time to set up Harpo Capital Partners there, Oprah.
Photo: United Nations photo