So, you’ve seen these new Oprah commercials for Weight Watchers? Me too.
Then I started to wonder how they even talked “O” to even do these commercials cause you ain’t paying her no endorsement fee, so what are they given to the woman who can BUY the company?
After a little research I’ve found that the media mogul seems to have bought into the company and made herself a pitch person. Hence, the “OPRAH EFFECT.”
The Oprah effect…if she co-signs it…you buy it!
So here’s what happens with the power of “O.”
Back in October, Weight Watcher International, a company with a stock that has been sinking for years had announced that Oprah Winfrey was joining the company’s board of directors and becoming one of the largest shareholders.
The news caused Weight Watchers’ stock to double in a single day of trading. The stock, at that time was as low as $6.79.
According to a Securities & Exchange Commission filing, Weight Watchers agreed to sell 6.36 million shares to Winfrey for $6.79 each, or $43.2 million. In addition, the company granted Winfrey an option to purchase another 3.5 million shares for $6.79 each.
After the mogul tweeted a video of herself Tuesday afternoon proclaiming she had lost 26 pounds while eating bread every single day on a Weight Watchers diet, shares of the diet company (WTW) skyrocketed more than 20%, closing at $13.29 a share and the previous day it was at $11.12.
Oprah owns 6.4 million shares, or roughly 10% of the stock, according to data from S&P Capital IQ —earned $12.5 million dollars on a single tweet, or more than $3 million an hour.
Add in her 3.5 million Weight Watchers’ stock option, which she disclosed in October, and Oprah made a whopping $19.2 million Tuesday, or close to $5 million an hour.
Oprah Winfrey loves “bread” and investors love Oprah.
And here is another one of Oprah’s power tweets! This is the one that sold the masses. You can eat bread and still lose weight? It’s on!
I get it though….Oprah loves DOUGH…I mean bread. Is this double talk?