Webtoon Entertainment Inc (NASDAQ:WBTN) announced a major expansion of its partnership with Walt Disney Co (NYSE:DIS).
This is a "strategic win" that should solidify Webtoon's position as a "global leader in digital comics," according to JPMorgan analyst Doug Anmuth.
Anmuth maintains a Neutral rating, while raising the price target from $14 to $22.
Under the expanded partnership, the company will build and operate a new digital comics platform that will bring more than 35,000 comics from Marvel, Star Wars, Disney, Pixar, and 20th Century Studios under one service, Anmuth said in the note.
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The platform will also feature select Webtoon Originals, which expands the company's reach to Disney+ and Marvel Unlimited audiences, he added.
"The announcement signals a significant step-up in scale [and] ambition," as it has Disney making a 2% equity investment, pending final approvals, the analyst stated.
"We believe the partnership expansion [and] equity investment are strong endorsements of WBTN's product, tech, and global leadership in the webcomic segment," he further wrote.
Price Action: Shares of WEBTOON Entertainment had risen by 29.08% to $19.31 at the time of publication on Tuesday.
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