Twitter Spikes Following New Live Content And Advertising Deal With Disney

Twitter Inc TWTR shares moved sharply higher Monday afternoon on a new content partnerhship with Walt Disney Co DIS.

What Happened

The companies entered into an agreement to create live content and advertising opportunities on Twitter from the entire Disney portfolio. Disney is going to create shows specifically for the Twitter platform.

Why It's Important

Through the agreement, participants from across the company will have the opportunity to create experiences unique to Twitter that will extend their brands in meaningful ways, said Justin Connolly, Executive Vice President, Affiliate Sales & Marketing, Disney and ESPN Media Networks. He added that the deal is bringing together best brands in sports, news and entertainment.

For Twitter, the partnership is going to provide more video content. In the last earnings report, more than a half of its advertising revenue came from video content.

What's Next

Twitter and ESPN will announce more details about the shows later this week at their planned advertiser presentations in New York. The content that could be created from ABC, Disney Channel and Freeform, Disney Digital Network, Walt Disney Studios Motion Pictures, Radio Disney and Marvel will also be announced at a later date.

At time of publication, Twitter was trading 5 percent higher at $30.38.

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