Webtoon Entertainment Inc. surged 81% in its best day since going public last year after announcing a partnership with Walt Disney Co. that will bring iconic characters such as Marvel’s Spider-Man and Luke Skywalker of to its platform.
The deal will allow it to publish 100 reformatted comics from Disney brands to a dedicated section on Webtoon’s English-language app, the company said in a statement on Tuesday after the market’s close. The two will also produce original web comics together.
The announcement came as Webtoon reported quarterly results that beat analyst expectations, which helped fuel the rally.
“Together, we’re bringing this legendary storytelling to a new generation of mobile-native comic fans, while giving existing fans a new way to experience series and characters they love,” said Yongsoo Kim, chief strategy officer and head of global Webtoon.
Disney marks the latest collaboration for Webtoon, a platform that allows creators and users to make and discover digital comics. The company also counts South Korean entertainment firm HYBE Co. Ltd. and DC Comics, which is owned by Warner Bros Discovery Inc., as content partners.
But even with the stock’s surge, the stock is still below the $21 price of its initial public offering last year, following a previous string of disappointing earnings reports.
Morgan Stanley’s Matthew Cost said the Disney partnership is an “intriguing development.”
“We believe this will be an important audience building effort that could help accelerate user growth in English speaking markets,” Cost wrote in a note published on Wednesday. “Our key question is whether that Disney audience will stay in Webtoon to consume and create platform-native content, or will they only consume the branded content they know?”
