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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 Wegovy and
Eli Lilly's 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.
(Reporting by Bhanvi Satija and Medha Singh in Bengaluru;
Editing by Shinjini Ganguli)
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