Webtoon Rockets 60% After Disney Unveils Partnership for New Platform Featuring 35,000-IP Library

TradingKey - Disney (DIS.US) and digital comics platform Webtoon (WBTN.US) announced a partnership agreement on Monday, under which the two companies will jointly develop a new digital comics platform featuring classic and contemporary comic works from Disney's Marvel, Star Wars, and 20th Century Studios brands. As part of the collaboration, Disney will acquire a 2% equity stake in Webtoon.

Fueled by this news, Webtoon's stock price surged nearly 90% to $28.48 in after-hours trading before settling at approximately 60% higher.

According to the agreement, the new platform will feature more than 35,000 Disney comic titles, presented in multiple formats. Some content will be reimagined or localized in Webtoon's signature vertical-scrolling format, particularly targeting the Korean and Japanese markets. The platform will also offer digitized versions of traditional comic books to meet the diverse needs of global readers.

Webtoon will be responsible for developing and operating the platform, which will be made available to Disney's existing Marvel Unlimited subscribers. Additionally, Disney+ subscribers will be able to access comic content on the new app for free through the "Disney+ Perks program."

“With a new platform that will combine our product and technical expertise with Disney’s full comic catalog, we’re 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.”

This partnership builds upon an initial agreement reached in August, under which certain Disney IPs were already made available on the Webtoon app in vertical-scrolling format.

"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 statement.

Investor confidence in Webtoon has been significantly boosted by this partnership. On the Stocktwits platform, Webtoon's retail trading sentiment shifted from "bearish" the previous day to "extremely bullish," with many individual investors adding it to their watchlists.

Webtoon went public on the Nasdaq in June 2024 and currently has a market capitalization of approximately $2 billion. Controlled by South Korean internet giant Naver, the company operates as a global storytelling technology company, running a platform where creators and user communities can discover, create, and share new content.