On Tuesday, Weight Watchers (NYSE:$WTW) shares were up nearly 20%. Why? Well, it all started after the New York City-based company posted better-than-expected earnings and increased its outlook.
Not only is this great news for the company, but it also means Oprah Winfrey’s potential profit in the company to almost $300 million over two years. Year to date, Weight Watchers stock is up 360%.
While it’s true the increase in the company’s stock might have to do with Winfrey’s involvement, Weight Watchers has continued to post impressive growth in their subscriptions. Year over year, total paid weeks increased 20% and end-of-period subscriptions increased 18% with growth in every geographic segment.
As for Oprah Winfrey, the media magnate originally bought a 10% stake in the company – which comes to roughly 6.4 million shares – 2 years ago, which is when shares traded for as low as $6.79. Now that shares are trading around $53, Winfrey has added roughly $300 million to her original $43 million investment.
Oprah Winfrey, who is now 63, owns roughly 10% of Weight Watchers and has the option to purchase an additional 5% stake. Due to the fact that Winfrey is a company board member, she continues to appear in advertisements and drive internet in subscriptions.
According to Forbes, Winfrey’s net worth comes to a total of $3.1 billion.
Featured Image: depositphotos/wolterke
