Webtoon shares soar on Disney investment, web comic venture
The broader partnership comes a month after the two companies announced their initial intent to collaborate
[SEOUL] Walt Disney is bringing all of its marquee comics to a new digital platform and app in partnership with Webtoon Entertainment, sending shares of the upstart company soaring.
Disney announced on Monday (Sep 15) that it plans to acquire a 2 per cent equity interest in Los Angeles-based Webtoon, part of a deepening partnership between the two that will build an ambitious new service to house all of Disney’s key assets in the genre. Stock in Webtoon rose as much as 90 per cent to US$28.48 in extended trading.
More than 35,000 comics, spanning back catalogues and ongoing series, from the various Disney, Marvel, Star Wars and 20th Century franchises will be available via a single subscription, Disney and Webtoon said in a statement. It’s an expansion of a service called Marvel Unlimited, and Disney+ subscribers will also get access to a curated selection. Marvel Unlimited costs US$10 per month and offers access to 30,000 comics.
The broader partnership comes a month after the two companies announced their initial intent to collaborate, which pushed Webtoon’s Nasdaq-traded shares up by 81 per cent in a day. Backed by South Korea’s Naver and Japan’s SoftBank Group, Webtoon will build and operate the new service and showcase a selection of Webtoon’s own original series on the new app.
Shares of South Korean studios behind web novels and comics climbed on Tuesday. Mr Blue shares soared by nearly 20 per cent, D&C Media gained as much as 5.4 per cent and KidariStudio rose as much as 6.9 per cent.
“With a new platform that will combine our product and technical expertise with Disney’s full comic catalogue, we are giving new and longtime fans all over the world a new way to discover these legendary characters and stories,” said Junkoo Kim, founder and chief executive officer of Webtoon, describing the new deal as “a strong foundation for even greater collaboration with Disney in the years ahead”.
Burbank, California-based Disney is expanding and diversifying its online media empire. This summer, it made a splashy addition of more sports and live content, via a deal between subsidiary ESPN and the National Football League.
As the US media giant ventures further its into web comics, Disney’s aim is to broaden its reach among younger, mobile-first audiences. Webtoon is known for its vertical-scrolling format, tailored for smartphones.
“We are opening doors to new audiences and deepening fan engagement,” said Josh D’Amaro, chairman of Disney Experiences. BLOOMBERG
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