Disney Partnership Sends Webtoon Soaring 97%

Webtoon Entertainment surged 97% after announcing a partnership with Walt Disney Co. to publish reformatted comics from Disney brands on its English-language app. The deal includes 100 reformatted comics and the production of original web comics. The announcement came after Webtoon reported quarterly results that beat analyst expectations. Disney marks the latest collaboration for Webtoon, which has also partnered with HYBE Co. Ltd. and DC Comics.

Title: Webtoon Entertainment's Strategic Partnership with Disney Drives Stock Surge and Revenue Growth

July 02, 2025

Webtoon Entertainment (NASDAQ: WEBTOON) saw its stock surge by 97% following the announcement of a strategic partnership with Walt Disney Co. to publish reformatted comics from Disney brands on its English-language app. The deal includes 100 reformatted comics and the production of original webcomics. This announcement came on the heels of Webtoon's quarterly results, which beat analyst expectations.

The partnership, one of the largest publishing deals Disney has ever done, involves iconic characters from Disney, Marvel, 20th Century Studios, and Star Wars. The first Disney-owned webcomic to debut will be the Amazing Spider-Man later in August, followed by Marvel’s Avengers, Star Wars, Alien, and "As Old as Time: A Twisted Tale" (with Belle and the Beast). The comics will be available in a dedicated section of the Webtoon English-language app, which has over 80 million monthly active users.

The financial terms of the multiyear deal are not being disclosed, but Daniel Fink, senior VP, head of digital innovation at Disney Consumer Products, described it as "one of the biggest publishing partnerships we have ever done." The deal is expected to bolster Disney's reach internationally and with Gen Z audiences, while Webtoon aims to tap into the $12.5 billion global comics market.

Webtoon's strategic focus on Gen Z and global expansion, particularly in Japan and Southeast Asia, is a key driver of its growth. The company's Q3 2025 revenue guidance of $380–390 million reflects a 9.4–12.2% year-over-year growth, driven by advertising, IP adaptations, and a global user base of 155 million. The company's cost control measures, including a 34% year-over-year expense cut, and its strong balance sheet with $581.5 million in cash reserves, support sustainable ecosystem development.

The partnership with Disney validates Webtoon's vertical-scroll format as a viable medium for mainstream IP, potentially accelerating adoption in markets like the U.S. and Europe. The freemium model, where the first few episodes of a webcomic are free to read and users must purchase in-app "coins" for full access, aligns with Webtoon's existing revenue streams and could drive higher conversion rates with Disney's brand power.

Webtoon's financial discipline, evident in its 2.8% adjusted EBITDA margin and $2.8 billion payout to creators since 2017, reinforces its commitment to building a sustainable ecosystem. The company's stock, currently trading at a price-to-sales ratio of 3.2x, offers potential upside if the Disney partnership delivers on its monetization promises.

For investors, key metrics to monitor include revenue growth, user acquisition costs, and IP adaptations revenue. The success of The Amazing Spider-Man and the broader Disney content rollout will be critical in determining Webtoon's ability to turn legacy IP into a new digital goldmine.

References:
[1] https://variety.com/2025/digital/news/webtoon-disney-100-titles-marvel-star-wars-webcomics-1236486840/
[2] https://www.ainvest.com/news/webtoon-strategic-growth-disney-partnership-catalyst-long-term-creation-digital-entertainment-2508/