WeightWatchers shares drop as Oprah Winfrey decides to exit board

WW International

29/02/2024 10:50

Feb 29 (Reuters) - Shares of WW International  WW.O ,
also known as WeightWatchers, took a pounding after the company
disclosed that media icon Oprah Winfrey will exit its board
later this year. 
    The shares fell 23.5% to $2.92 in premarket hours on
Thursday and have more than halved in value so far this year.
Short interest for the stock stood at 17.5% of the outstanding
shares. as of Feb. 28. 
    Late on Wednesday, WW International said the talk show host,
who has been a board member since 2015, will not be standing for
re-election at the 2024 annual shareholder meeting. 
    Winfrey has been in the spotlight in recent months,
following her public announcement about using prescription
medication to manage her weight. 
    Currently, there are two approved treatments in the United
States for chronic weight management - Novo Nordisk's  NOVOb.CO 
Wegovy and Eli Lilly's  LLY.N  Zepbound.
    Winfrey will donate the shares of the company owned by her
to the National Museum of African American History and Culture
(NMAAHC), WeightWatchers said, adding the decision would
"eliminate any perceived conflict of interest around her taking
weight loss medications."  
    She owned 1.13 million shares worth $6.34 million as of Jan.
1, LSEG data showed. 
    Winfrey also intends to donate any future proceeds from her
WW stock options to NMAAHC. 
    WW International has a lower forward price-to-earnings
multiple - a common benchmark to value stocks - of 13.55
compared to 17.21 for its peer USANA Health Services  USNA.N . 

 (Reporting by Bhanvi Satija and Medha Singh in Bengaluru;
Editing by Shinjini Ganguli)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))