JUser: :_load: Unable to load user with ID: 130

Oprah Winfrey Banks $700 Million From Thin Air In Two Days Of Stock Market Trading

Call it the Oprah effect or Oprah’s golden touch. But Oprah Winfrey’s magic has worked in the stock market for the second straight day.

Winfrey announced on Monday morning that she had agreed to purchase a 10% stake in Weight Watchers International and had signed a collaboration deal to promote the diet company and its services. The announcement has caused shares of Weight Watchers to soar. With the stock changing hands for around $18, Winfrey has single-handedly generated $700 million in stock market value in two days, given that the company has 63.6 million shares outstanding following the Winfrey deal.

Shares of Weight Watchers are up about 170% since they opened for trading on the New York Stock Exchange on Monday morning. Weight Watchers’ stock doubled in value on Monday and rose by another 30% or so on Tuesday.


The big winner is Winfrey herself. Her 10% stake in Weight Watchers is now worth some $110 million. Her two day paper profit? Also about $110 million. That’s right. In addition to the 10% stake Winfrey bought on Tuesday for $43.2 million, the company also awarded Winfrey an option to purchase 3.5 million shares for $6.79 each, which was the price the stock closed at on Friday afternoon. Winfrey will now have to make sure Weight Watchers meets the high expectations that investors are placing on it. She can’t sell any of her Weight Watchers stock for two years and can’t unload the entire position for five years.


Disney to end movie deal with Netflix and start its own streaming services


The other big winner here this week is Ray Debbane, the chairman of Weight Watchers who has controlled the company since 1999. Debbane’s New York money management firm, Invus, controls a majority of Weight Watchers’ stock through its Artal Group. Invus has already collected nearly $4 billion in cash from its Weight Watchers investment through the years. But Invus’ stake in Weight Watchers had diminished in value in recent years. Invus’ stake in Weight Watchers, however, has increased in value by about $340 million in the last two days.


The losers have been the short sellers, investors who had been betting shares of Weight Watchers would continue to fall. Weight Watchers recently had a short interest of about 11.6% of its shares outstanding. The short sellers had been successfully betting against Weight Watchers for months, but this week they ran into Winfrey, who Debbane described in a statement as a “force of nature.”

Follow Us

Subscribe Our Newsletter

Amazing Deals & Updates In Your Inbox

Popular Post

Company respects the intellectual property of others and asks that users of our Site do the same. In connection with our Site, we have adopted and implemented a policy respecting copyright law that provides for the removal of any infringing materials and for the termination of users of our online Site who are repeated infringers of intellectual property rights, including copyrights. If you believe that one of our users is, through the use of our Site, unlawfully infringing the copyright(s) in a work, and wish to have the allegedly infringing material removed, the following information in the form of a written notification (pursuant to 17 U.S.C. § 512(c)) must be provided to our designated Copyright Agent: your physical or electronic signature; identification of the copyrighted work(s) that you claim to have been infringed; identification of the material on our services that you claim is infringing and that you request us to remove; sufficient information to permit us to locate such material; your address, telephone number, and e-mail address; a statement that you have a good faith belief that use of the objectionable material is not authorized by the copyright owner, its agent, or under the law; and a statement that the information in the notification is accurate, and under penalty of perjury, that you are either the owner of the copyright that has allegedly been infringed or that you are authorized to act on behalf of the copyright owner. Please note that, pursuant to 17 U.S.C. § 512(f), any misrepresentation of material fact in a written notification automatically subjects the complaining party to liability for any damages, costs and attorney’s fees incurred by us in connection with the written notification and allegation of copyright infringement.