OPRAH Winfrey is paying about $43.2 million for a 10 percent stake in Weight Watchers and is joining the weight management company’s board.
The company’s shares are up almost 75 percent in premarket trading on word of the deal.
Weight Watchers International Inc. said in a filing with the Securities and Exchange Commission on Monday that as part of a five-year agreement, 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. She also will make personal appearances on the company’s behalf.
The entertainment icon has signed up for a weight-loss program and will share her experience.
For her part, Winfrey has the right to use Weight Watchers to collaborate with and promote the company, its programs, products and services. Winfrey will consult with Weight Watchers and help in the development, planning and execution of its program and related initiatives.