Shares of Webtoon Entertainment (WBTN) surged more than 58% in after-hours trading yesterday on news of a partnership and equity investment by The Walt Disney Company (DIS). The two entertainment giants are collaborating to create a new digital comics platform that will feature more than 35,000 comics from Marvel, Star Wars, Disney, Pixar, and 20th Century Studios in a single paid service.
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Moreover, Disney has entered into a non-binding term sheet to buy a 2% equity stake in Webtoon Entertainment, subject to a definitive agreement and regulatory approval. Disney shares remain unchanged on the news. Webtoon is renowned for its vertical-scroll format, specifically designed for smartphone reading.
Here’s How the Partnership Will Work
The new comic platform will be built and operated by Webtoon and will expand on the Marvel Unlimited subscription service, which costs $10 per month and offers access to 30,000 comics. The platform will showcase Disney’s archived comics and current comic book runs in both traditional and vertical formats. Additionally, Disney+ subscribers will get access to a curated collection of comic titles at no extra cost through the Disney+ Perks program.
Backed by South Korea’s Naver Corp. and Japan’s SoftBank Group (SFTBY), Webtoon continues to leverage its strong global ties. Junkoo Kim, founder and CEO of Webtoon, said, “We’re giving new and longtime fans all over the world a new way to discover these legendary characters and stories.”
Disney Seeks to Expand its Comic Offerings to New Audiences
Commenting on the collaboration, Josh D’Amaro, Chairman of Disney Experiences, said, “Through our expanded relationship with Webtoon, the global leader in digital comics, we’re opening doors to new audiences and deepening fan engagement.”
The new platform will also target broad distribution, including the localization of select comics for Webtoon’s Korean and Japanese platforms. The news follows Disney’s announcement last month to bring nearly 100 classic comics and new online series to Webtoon’s platform, adapting them to its mobile vertical-scroll format.
Is Webtoon Stock a Buy, Hold, or Sell?
On TipRanks, Webtoon stock has a Moderate Buy consensus rating based on two Buys and three Hold ratings. The average Webtoon Entertainment price target of $15.70 implies nearly 5% upside potential from current levels. In the past three months alone, WBTN stock has surged over 70%.
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