WEBTOON Entertainment Launches Video Episodes, Bringing Webcomics to Life with Short-Form Video

WEBTOON Entertainment launches Video Episodes, a new feature that brings webcomics to life with dynamic motion, immersive sound, and real voice acting. A selection of 14 English WEBTOON Originals will feature 20, five-minute Video Episodes available for free, with new episodes rolling out through 2025. The feature is designed to deepen engagement, help creators reach more users, and deliver a new medium for amazing stories.

Webtoon Entertainment's (NASDAQ: WBTN) stock surged 93% to a 52-week high on July 2, 2025, following a strong earnings report and an unexpected partnership with Walt Disney Company (NYSE: DIS). The company's stock closed at $9.20, up from $4.70 on the previous day, driven by a 2.41% increase during regular trading hours and further gains in aftermarket trading.

The primary catalyst for the stock's surge was Webtoon's Q2 earnings report, which beat analyst expectations. The company reported earnings per share (EPS) of $0.07, surpassing estimates of -$0.17 per share. Revenue for the quarter reached $348 million, up 8.5% year-over-year and beating forecasts of $341.2 million. Webtoon's net loss narrowed to $3.9 million from $76.6 million in the same quarter a year ago, driven by lower general and administrative expenses.

However, the real game-changer was the announcement of a multi-year partnership with Disney. The deal will bring Disney's extensive comic library to Webtoon's mobile platform, including titles from Disney, Marvel, 20th Century Studios, and Star Wars. The partnership will also involve the creation of new, original webcomics from these brands. Yongsoo Kim, Chief Strategy Officer and Head of Global Webtoon, expressed enthusiasm about the collaboration, stating, "We’re thrilled to kick off this collaboration with iconic series from their comic book catalog – and this is just the start!" [1]

The partnership is expected to provide an additional revenue opportunity for Webtoon, which projects third-quarter revenue between $380 million and $390 million, representing growth of 9.4% to 12.2%. Adjusted EBITDA is targeted to reach $2.0 million to $7.0 million in Q3.

Morgan Stanley raised Webtoon's price target to $11 per share on the news, but the stock blew well past that. The company is nearing profitability, with a price-to-sales ratio of 0.90, suggesting a good value.

On the same day, Webtoon Entertainment launched Video Episodes, a new feature that brings webcomics to life with dynamic motion, immersive sound, and real voice acting. A selection of 14 English WEBTOON Originals will feature 20, five-minute Video Episodes available for free, with new episodes rolling out through 2025. The feature is designed to deepen engagement, help creators reach more users, and deliver a new medium for amazing stories.

References:
[1] https://www.investing.com/analysis/webtoon-entertainment-stock-momentum-builds-on-disney-partnership-buzz-200665299