Financial details weren’t disclosed, but Snap Inc, which is the parent company of Snapchat, has been signing similar deals with many content producers lately. The social media giant is reportedly prepping for an IPO next year, and it wants to beef up its offerings and engagement levels prior to going public.
Disney will reportedly make all the money in the deal, according to Reuters:
Unlike in Snapchat’s other deals with media companies, where any ad sales responsibilities would be shared across both companies, Disney will control and sell all advertising for the shows it produces for Snapchat.
The agreement with the Disney-ABC Television Group, which includes the ABC broadcast network and cable channel Freeform, begins in January with a series around ABC’s popular “The Bachelor” franchise. The recap series, “Watch Party: The Bachelor” will debut Jan. 3, a day after the ABC show begins its 21st season.
More series will be rolled out in due time. Disney commented in a statement:
“Earlier this year, we worked closely with Snap on a very successful The Oscars Live Story and we look forward to building on that relationship and providing Snapchat’s mobile-centric users with a unique, immersive experience around our shows and brands.”
Disney shares rose $0.13 (+0.12%) to $105.59 in Wednesday afternoon trading. Year-to-date, DIS has gained just 0.56%, versus a 10.78% rise in the benchmark S&P 500 during the same time period.