Not only are all of us making big changes and plans for the new year, but eDiets is doing so, too. One of the more familiar names in dieting, and one of the first to take the industry online, is finalizing a merger with the As Seen on TV brand. The initial announcement was made last fall and will soon complete a stock-for-stock buyout that will remove eDiets as a public company and make it a wholly owned subsidiary of the direct marketing giant.
“It’s an intriguing business acquisition, for a TV company to own a diet company” said Steve Rogai, CEO of As Seen on TV, when we spoke him this week about the merger. He explained that with eDiets being a direct marketing company that sells a food product and As Seen on TV selling a variety of consumer goods direct to consumer, it makes this new business a “synergistic fit.”
eDiets’ performance in recent years hasn’t been remarkable. When the initial report was made in August, InvestorPlace.com reports that eDiets was being purchased “for 80 cents a share — roughly double what the micro-cap stock had been selling for.”
Rogai commented that eDiets has had its ups and downs, “sometimes more down than up.” He also described this merger as a smart business move that would save eDiets more than one million dollars a year by no longer being a public company.
As for the meal delivery industry as a whole, it’s profitable and will continue to be so. Per a May 2024 report by John LaRosa’s Marketdata Enterprises, he told us they had “identified approximately 30 companies participating in the meal delivery business. We estimated the market’s value at $925 million.” At that time he also projected this segment of the diet market to reach $1.09 billion in revenue by 2024.
What can we expect to see for eDiets in this new year? Not only are they working to introduce a more competitive meal delivery option, but they’ve already signed and announced an endorsement deal with entertainer CeeLo Green. A judge on the Voice and soon be the face of his own Las Vegas show, Loberace, CeeLo made it known late last year that he wanted to get healthy in 2024. (more…)