Snapchat could be getting a super-powered boost.
Snapchat could be getting a super-powered boost.
Time Warner Inc. and Snapchat’s parent company Snap Inc. on Monday reached a $100 million deal, in which Time Warner will supply new shows for the popular app.
The content giant did not detail specific Snapchat shows in the works, but it could pull from HBO (Game of Thrones) , Turner and its networks CNN and Cartoon Network, as well as Warner Bros. film studio (Wonder Woman, Kong: Skull Island) . Time Warner plans to create as many as 10 Snapchat shows annually. Also part of Time Warner’s commitment: advertising from HBO, Turner and Warner Bros., on Snapchat.
The deal, first reported by The Wall Street Journal, was announced by the two companies Monday in a statement. A person familiar with the situation who did not have authority to comment publicly confirmed to USA TODAY the $100 million deal and the plan for up to 10 shows each year.
Snap shares rose 1.9% Monday. Shares have lost nearly one third of their value since the start of IPO trading, touching their IPO price of $17 last week.
The company has been growing is catalog of Show offerings for months. The three- to five-minute short videos play in the vertical smartphone format of the app. Earlier this year, NBCUniversal invested $500 million in Snap Inc., as part of its IPO. Among the network and studio’s series already with content on Snapchat include World of Dance, The Voice, Saturday Night Live and E1 News’ The Rundown. Other networks and studios’ offerings have come from ABC, BBC, CBS, Discovery Networks and the NFL.
Snap expects to have three shows airing daily by the end of the year. Currently, about one show airs daily.
Time Warner awaits regulatory approval of its $85.4 billion acquisition by AT&T, which was announced in October 2016.
“Partnering with Snap will help drive this compelling new format, exposing its user base to innovative and engaging video from brands and characters they trust and enjoy, » said Gary Ginsberg, Time Warner’s executive vice president of corporate marketing and communications, said in a statement. “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, » said Nick Bell, Snap’s vice president of content, said in a statement.
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Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider .
