The WEBTOON Entertainment share price increased by more than one-third after it clinched a deal with Walt Disney Company to create a new digital comics platform with Disney content, including the Marvel and "Star Wars" franchises.
They also entered into a non-binding term sheet for Disney to buy 2% of WEBTOON Entertainment, subject to agreeing terms and closing conditions.
WEBTOON (NASDAQ: WBTN) shares closed $5.84 (39.04%) higher at $20.80, capitalising the digital entertainment company at US$2.71 billion (A$4.07 billion), before easing to $19.99 in after-hours trading.
WEBTOON and Disney earlier announced they would develop a digital comics platform featuring more than 35,000 comic books, including decades of past comics from Disney’s portfolio such as Marvel, Star Wars, 20th Century Studios and Pixar.
“Through our expanded relationship with WEBTOON, the global leader in digital comics, we’re opening doors to new audiences and deepening fan engagement," Disney Experiences Chairman Josh D'Amaro said in a press release.
WEBTOON and Disney already had a multi-year collaboration featuring almost 100 reformatted classics and new original series tailored for the vertical scrolling format used on the WEBTOON platform.
Disney+ subscribers will be given access to a curated selection of comic titles in the new app at no extra cost.
“This is a powerful next step for our growing global business, and a strong foundation for even greater collaboration with Disney in the years ahead,” WEBTOON Founder and CEO Entertainment Junkoo Kim said.
