Renowned talk show host Oprah Winfrey has announced her decision to step down from the board of directors at WeightWatchers after serving for nine years. In a move that sent shockwaves through the company, Winfrey also revealed that she will be donating her entire stake in the weight-loss company to the National Museum of African American History and Culture. WeightWatchers, also known as WW International, saw its shares plummet by 27% in extended trading following the news.
Winfrey, who joined WeightWatchers in 2015 and played a key role in boosting the company's profile, disclosed last year that she relies on prescription weight-loss medications to manage her weight. She has not disclosed the specific medication she uses, but has emphasized that it is a tool to prevent yo-yo dieting. The media mogul's decision to donate her shares to the museum is aimed at eliminating any perceived conflict of interest related to her use of weight-loss medications.
WeightWatchers itself has entered the prescription weight-loss drug business by acquiring telehealth provider Sequence for $106 million. The company has also introduced WeightWatchers GLP-1, a subscription program for users of GLP-1 drugs like Ozempic. The weight-loss industry has seen a shift towards these types of medications, leading to increased competition and challenges for traditional diet companies.
As WeightWatchers struggles amid these industry changes, Winfrey has decided to distance herself from the company. Her stake in WeightWatchers, which was previously around 10%, has now been reduced to 1.4%. The company's latest earnings report showed a net loss of $88.1 million for the last quarter of 2023, reflecting the challenges it faces in the evolving weight-loss market.
Winfrey's departure from WeightWatchers marks the end of an era for the company, as she has been a prominent figure in its marketing and advertising efforts. Her decision to donate her stake to the National Museum of African American History and Culture reflects her ongoing support for the organization and her commitment to promoting the contributions of African Americans. The company has expressed support for Winfrey's donation and her efforts to raise awareness about obesity as a chronic condition.
