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Tajuk : Snap shares surge on $100 million deal to make shows with Time Warner
link : Snap shares surge on $100 million deal to make shows with Time Warner

Snap shares surge on $100 million deal to make shows with Time Warner

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Shares of Snapchat maker Snap Inc. jumped nearly 3% on Monday following the news that the app maker has entered a new agreement to make original shows with Time Warner.

The deal means that Time Warner will pay Snap $100 million to develop shows and advertise in the app over the next two years, according to a person familiar with the matter.

And the partnership comes at a crucial time for Snap, whose shares sunk to its $17 IPO price for the first time last week. Tech giants like Facebook, Netflix, Amazon, and Apple are all increasingly competing for original shows.

Snap typically broadcasts one shows per day in its app under a “Shows” header. They are all 5-10 minutes in length and are made in participation with networks like NBC, ABC, BBC, A&E, Discovery, Vice, and others. Shows have collectively drawn “audiences of over 8 million,” Snap CEO Evan Spiegel said during the company’s last earnings call.

By the end of 2017, Snap aims to have 2-3 shows air in its app every day, a spokesperson told Business Insider in May.

“This partnership is another exciting step as we continue to branch out into new genres, including scripted dramas, comedies, daily news Shows, documentaries, and beyond,” Snap’s VP of content, Nick Bell, said in a statement on Monday.

Get the latest Snap stock price here.

NOW WATCH: WPP CEO Sir Martin Sorrell on Snapchat becoming the ‘third force’ to Google and Facebook

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Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.

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