Oprah Winfrey has announced her resignation from WeightWatchers, causing a significant decline in the company’s stock value.
Oprah Winfrey has announced her resignation from her position on the board of directors at WeightWatchers after dedicating nine years to the role. In addition, she has committed to contributing her shares in the company to the National Museum of African American History and Culture.
Oprah Winfrey’s declaration, released on Wednesday night, caused a sharp decrease in WeightWatchers’ stock. The value of the company’s shares, which had previously reached over $40 in 2021, dropped by 17% on Thursday, trading at $3.18 in the morning.
In 2015, the arrival of Winfrey as a member of WeightWatchers brought significant attention to the weight-loss company, causing its stock value to increase significantly shortly after the partnership was disclosed. However, the weight-loss market has faced difficulties in recent times as consumers have turned to GLP-1 medications like Ozempic, which use hormones to suppress appetite and have proven effective in aiding weight loss.
The initial investment for acquiring 6.4 million shares was $43.2 million.
Last year, the celebrity publicly admitted to using medication to control her weight. In an interview with People magazine in December, Winfrey stated that she was not ashamed of her decision and had consulted a doctor for a prescription. However, she did not reveal the specific drug she relies on. Winfrey explained, “I now take it as needed to prevent fluctuations in my weight.”
introducing
Last year, WW International, also known as WeightWatchers, entered the market for prescription weight-loss drugs with the launch of…purchasing Sequence
, a telehealth platform that provides individuals with the ability to obtain GLP-1 medications. It also launchedWeightWatchers GLP-1, a subscription program for people using that class of drugs.
According to Winfrey, she plans to keep providing guidance and working together with WeightWatchers and CEO Sima Sistani in raising awareness about obesity as a long-term health issue, aiming to decrease discrimination and promoting fair access to healthcare.
Oprah Winfrey announced that she will be gifting her shares in Weight Watchers to the National Museum of African American History and Culture, an institution of the Smithsonian in Washington, D.C. This decision reflects her ongoing commitment to the organization.
WeightWatchers stated that Winfrey chose to donate her shares in order to avoid any potential conflicts of interest related to her use of weight loss medications.
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Source: cbsnews.com