Oprah Winfrey is taking a 10 percent stake in Weight Watchers for about $43.2 million and is joining the weight management company’s board.
Weight Watchers International Inc. said in a filing with the Securities and Exchange Commission on Monday that as part of the agreement, Winfrey has given the company the right to use her name, image, likeness and endorsement for the company, its programs, products and services, subject to her approval. Winfrey also has the right to use Weight Watchers marks to collaborate with and promote the company.
Winfrey is buying about 6.4 million shares of Weight Watchers. The company’s board expands from nine to 10 members with Winfrey’s inclusion.
The five-year agreement has additional successive one-year renewal terms.
Weight Watcher’s shares climbed almost 37 percent in premarket trading.
The Associated Press contributed to this article