Oprah Winfrey, the successful media mogul, has made a poor investment in becoming a ten percent owner of the weight loss company WeightWatchers(WTW).
In 2015, Winfrey purchased part of the company and had been celebrating an almost one-hundred-twenty-million increase in profit since she has come aboard. However, in recent months the company’s shares have experienced a 7 percent drop over in the stock prices. In fact, WeightWatchers stock has lost a full billion dollars since Winfrey has become part of the enterprise.
Many investors are disappointed that this company isn’t experiencing the rebirth expected, which in turn has caused many of them to sell their stock. As the third largest investor, Winfrey was supposed to bring positive attention and revenue to this weight loss giant. Profit is technically up for this company, but they are still hemorrhaging money through every single fiscal quarter.
The day that Winfrey made the announcement about coming on board, all of the shares of Weightwatchers doubled at the excitement. Now, a year later, it seems like all of that excitement was for naught as the company is continuing to struggle. Winfrey is not the only investor to lose money coming into the business. When she decided that she was going to become an investor, it was through the hopes that this would be another successful partnership for her. Winfrey has a history of investing well and seeing the rewards, and many are wondering what her next steps will be with this flailing company.
All in all, the company is in better standing than they were last year, but they are not netting anywhere close to what they need to sustain. At this rate, it seems as though Winfrey was a last ditch effort to save a company that was going down on their own. It isn’t like WeightWatchers is in bankruptcy, but this enterprise cannot continue to function at a loss.
It’s unsure the next road that WeightWatchers will take, or even if Oprah Winfrey has some ideas to add to this company’s profitability. It’s just amazing to see that something that Winfrey has touched has not turned to gold, and the fallout could be more than she thought possible.