The move is part of Weight Watcher’s effort to transform its brand to encompass overall wellness, instead just weight loss.
Ms. Winfrey is buying approximately 6.4 million shares of Weight Watchers at $6.79 per share. She will also receive options to purchase an additional 5 percent of Weight Watcher’s fully diluted shares, according to the report.
Following the announcement of Ms. Winfrey’s purchase, shares of Weight Watchers nearly doubled. Shares rose by 90 percent to $12.88 in morning trading Monday.
In a filing with the Securities and Exchange Commission Monday, Weight Watchers International said as part of a five-year agreement, Ms. 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, according to the report. She will also make personal appearances for Weight Watchers.
In exchange, Ms. Winfrey has the right to use Weight Watchers marks to collaborate with and promote the company, its programs, products and services, according to the report. She will also consult with Weight Watchers and help develop, plan and execute its programs and related initiatives.
The agreement has additional successive one-year renewal terms, according to the report. Ms. Winfrey’s term on the company’s board ends in 2018.
More articles on population health:
DePaul, Rush collaborate to tackle health disparities in Chicago
CVS exec: 4 reasons health systems should partner with retail pharmacies
Healthcare demands burden nearly 40% of older adults, study reveals
