Webtoon Entertainment Stock Soars On Disney Deal
Shares of digital comic platform company Webtoon Entertainment Inc (NASDAQ:WBTN) are trading higher on Tuesday after the company announced a deal with entertainment giant Walt Disney Co (NYSE:DIS) to develop an all-digital comics platform using Disney’s extensive portfolio.
What To Know: Webtoon shares initially jumped 60% after the company entered into a non-binding term sheet with Disney for the development of an all-new digital comics platform. Shares were up about 29% at last check, according to Benzinga Pro.
Alongside the planned commercial collaboration, Disney also entered into a non-binding term sheet to acquire a 2% equity interest in Webtoon.
The companies will create a platform of more than 35,000 comics using titles from Marvel, Star Wars and Pixar. The deal expands on a current partnership called Marvel Unlimited and will be another Disney subscription service. Disney plans on offering certain titles to current Disney+ members as a part of its perks program, and will also localize some offerings created under the new partnership for Webtoon’s Korean and Japanese audiences.
“By uniting our unparalleled collection of comics across Marvel, Star Wars, Disney, Pixar and 20th Century Studios into a single digital platform, we’re giving fans unprecedented access to the adventures they love – all in one place,” said Josh D’Amaro, chairman of Disney Experiences.
“Through our expanded relationship with WEBTOON, the global leader in digital comics, we’re opening doors to new audiences and deepening fan engagement.”
Webtoon first launched in South Korea in 2004 as an internet comic hosting site and has grown over the past 20 years to offer comics in Korean, Japanese, Thai and Spanish, in addition to other languages. It launched in English in 2014 and has partnered with numerous digital media companies like DeviantArt and DC Entertainment.
WBTN Price Action: Webtoon shares were up 28.68%, trading at new 52-week highs of $19.25 at the time of publication on Tuesday, according to Benzinga Pro.
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