Webtoon Entertainment Inc. Signage was during its first public event outside the Nasdaq MarketSite in New York, USA, on Thursday, June 27th, 2024.
Michael Nuggle | Bloomberg | Getty Images
Webtoon Entertainment Stocks rose sharply on Tuesday. Disneyand agree to the Media Conglomerate to sell 2% shares.
The Webtoon temporarily jumped around 39%, reaching a new height of 52 weeks. The stock is etched in the second-largest day-old advance since it went public last year.
Webtoon Entertainment, 1 day
Disney and Webtoon agreed on Monday to create a digital platform for the studio’s Marvel and Star Wars brands. More than 35,000 comics related to Disney properties, including Pixar and 20th century studios, will be available for the first time on one service with one subscription, the company said.
“Priority destination”
Deutsche Bank analyst Benjamin Black explained the “material expansion” from the partnership first announced in August and the transaction on Monday. Disney helps diversify Webtoon’s income by creating a steady stream of repetitive income.
The deal could also help boost profits from other intellectual property (IP) owners trying to chase Disney’s leads, Brock said.
“The new agreement further validates the Webtoon platform as a priority destination for major IP distribution,” Black wrote to the client.
Morgan Stanley analyst Matthew Kost was skeptical of the immediate impact of the transaction on Webtoon’s short-term revenues. In fact, he pointed out the need to invest in building a new platform.
One of the goals of Webtoon is to expand our English-speaking user base. Cost says this is the biggest revenue opportunity for the company.
Including Tuesday’s rally, Webtoon stock has more than doubled in the past three months.
