National / U.S. News

Oprah paying $43.2M for Weight Watchers stake, joining board

FILE - In this Wednesday, Oct. 14, 2015, file photo, Oprah Winfrey attends the premiere of the Oprah Winfrey Network's (OWN) documentary series "Belief," at The TimesCenter in New York. Weight Watchers announced Monday, Oct. 19, 2015, that Winfrey is taking an approximately 10 percent stake in Weight Watchers for about $43.2 million and joining the weight management company’s board. (Photo by Greg Allen/Invision/AP, File)

FILE – In this Wednesday, Oct. 14, 2015, file photo, Oprah Winfrey attends the premiere of the Oprah Winfrey Network’s (OWN) documentary series “Belief,” at The TimesCenter in New York. Weight Watchers announced Monday, Oct. 19, 2015, that Winfrey is taking an approximately 10 percent stake in Weight Watchers for about $43.2 million and joining the weight management company’s board. (Photo by Greg Allen/Invision/AP, File)

NEW YORK (AP) — Oprah Winfrey is taking a 10 percent stake in Weight Watchers for about $43.2 million and is joining the weight management company’s board.

Weight Watchers International Inc. said in a filing with the Securities and Exchange Commission on Monday that as part of the 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. Winfrey also has the right to use Weight Watchers marks to collaborate with and promote the company.

Winfrey is buying about 6.4 million shares of Weight Watchers. The company’s board expands from nine to 10 members with Winfrey’s inclusion.

The five-year agreement has additional successive one-year renewal terms.

Weight Watcher’s shares climbed almost 37 percent in premarket trading.

 

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