Webtoon (WBTN) Soars 58% After Exciting Disney Partnership and Equity Stake Announcement – Must-Read Insights from TipRanks.com

Shares of Webtoon Entertainment (WBTN) jumped over 58% in after-hours trading after news broke about a significant partnership with The Walt Disney Company (DIS). The two companies are teaming up to launch a digital comics platform, which will include more than 35,000 titles from franchises like Marvel, Star Wars, Disney, and Pixar.

Disney is also looking to acquire a 2% equity stake in Webtoon, pending a final agreement and regulatory approval. Interestingly, Disney’s own stock didn’t move much on this announcement. Webtoon is recognized for its vertical-scroll format, which is perfect for reading on smartphones.

The new platform is set to enhance Disney’s existing Marvel Unlimited service. This service currently offers 30,000 comics for $10 a month. With the partnership, users will have access to both classic and current titles in multiple formats. Disney+ subscribers will even enjoy a selection of comics at no extra cost.

Webtoon, backed by South Korea’s Naver Corp. and Japan’s SoftBank Group, continues to strengthen its global presence. Junkoo Kim, the founder and CEO, stated that the goal is to provide fans new ways to connect with beloved characters and stories.

Josh D’Amaro, Chairman of Disney Experiences, expressed excitement about reaching new audiences through this collaboration. The partnership also involves localizing certain comics for Webtoon’s audience in Korea and Japan. This initiative follows Disney’s recent move to add nearly 100 classic and new series to Webtoon’s platform.

As for Webtoon’s stock, analysts on TipRanks view it as a “Moderate Buy,” with recommendations leaning slightly more towards buying than holding. The stock has seen an impressive gain of over 70% in the last three months.

Recent trends show growing interest in digital comics. A survey by the App Annie (now known as data.ai) revealed that download numbers for comic apps have increased by 20% year-over-year. This growth highlights not just a shift in media consumption but also the potential for more collaborations in the future within this vibrant sector.

For more insights, check out TipRanks.

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