Oprah Winfrey’s investment in Weight Watchers is feeling a pinch. In October 2015, Oprah became a stakeholder with 10 percent stake in the company. Thrilled with their weight loss program, Oprah announced that she lost 26 pounds. However, now it seems that she may be loosing way more than body fat. The company’s stock has crashed several times since Oprah hopped on the team. EURWeb reports that stocks are 60 percent lower than they were in November 2015 and has fallen 50 percent since January. As a result, the brand announced a $11 million lost for last quarter. For Weight Watchers, however, the major concern is customer retention. Membership has dropped tremendously. Also, people attending WW meetings has decreased, which in turn has heavily affected their sales projections. Oprah’s pockets is inclined to gain weight back. It is reported that, although she’s lost $27 million, a few forthcoming ventures will put her investment back to where it needs to be. CEO James Chambers noted that, “We’re just scratching the surface of the potential engagement opportunities between members and Oprah. Behind the scenes, Oprah is equally as involved as a board member and adviser.” As of now, company stock is priced at $15.55. Per Oprah’s deal, she still has the option to buy 3,513,468 more shares at her original stock price, $6.79. That’s another $50 million to gain by Oprah.
