Oprah’s Next Favorite Thing; The Force Does Not Awaken Hasbro’s “Girl” Toys; Amazon/New York Times Smackdown

Everything she touches turns to green…

Image courtesy of Mister GC/FreeDigitalPhotos.net

Image courtesy of Mister GC/FreeDigitalPhotos.net

Media titan-ess and Forbes’ 211th richest American, Oprah Winfrey, just added to her portfolio by scooping up a 10% stake in Weight Watchers. At $6.79 a pop, Winfrey snagged 6.4 million shares for a $43.2 million purchase.”I believe in the program so much I decided to invest in the company and partner in its evolution.” Awww. Apparently, her own personal experience with the company’s program led her to some very desirable results and now investors are hoping to see if the “Oprah Effect” can help turn around the struggling diet company, which has been in a perpetual slump for the last few years. So far it seems to be working as the stock soared 92% on the news of Oprah Winfrey’s involvement with a seat on the board as well as becoming an adviser to the company. Maybe that surge will help offset the 92% loss the shares have suffered since 2011, when the stock hit its peak of $85.76. The company had been losing ground to the tech age as dieting has been steadily going digital. Now Weight Watchers has begun to shift its program to focus on living a healthier lifestyle as opposed to just dieting and is jumping on the digital bandwagon by offering tech services to attract new customers and keep existing ones, Oprah and all.

May the force be with your profits…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The force is apparently with Hasbro as the toy company’s earnings are up 15% mostly thanks to licensing deals with Jurassic World and Star Wars. The toymaker was able to strike down analysts forecasts with profits coming in at $207.6 million and a $1.64 per share when predictions were for $1.52 per share. Hasbro easily beat last year’s same-period digits of $180.5 million and $1.40 per share. But the dark force still looms large for the toymaker and not just from the $132 million that was affected because of the strong U.S. dollar. Shares from its girl division fell 28% for the fourth straight quarter. Is it even P.C. for Hasbro to have a boys and girls category? Just wondering.  But the young consumers, to whom these girl toys are presumably marketed, have been shifting their preferences towards gadgets and tablets instead of blond hair and magic ponies. Which is too bad since that female-focused category accounts for 50% of Hasbro’s total revenues and remained at a very flat $.147 billion.

Right back at ya!

Image courtesy of digital art/FreeDigitalPhotos.net

Image courtesy of digital art/FreeDigitalPhotos.net

I’m guessing there will be no Amazon swag for the New York Times in the near (and distant) future. Still reeling from a scathing New York Times story from August, Amazon has finally fired back at the newspaper by calling into question its reporting capabilities.  Not that Amazon is the first entity to have to do this with the New York Times, but I digress. The story, published back in August, painted a very unattractive picture of the employee atmosphere at the e-commerce giant. Former White House Spokesman Jay Carney, who now serves as Amazon’s Senior Vice President for Global Corporate Affairs, strongly responded to the “newspaper of record” for blog Medium. Carney said it took two months to formulate its response to the New York Times because the tech giant was “hoping they might take action to correct the record. They haven’t, which is why we decided to write about it ourselves.” Among some of the pearls was the bit about former Amazon employee Bo Olsen who, when interviewed by the NYT, told reporters Jodi Kantor and David Streitfeld, that he saw many many employees crying at their desks.  Apparently he was making these observations while defrauding vendors and falsifying business records and subsequently resigned following an investigation. So much for the Pulitzer on that story.

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