IQ Inks Deal with Viacom

iQIYI, Inc. (NASDAQ: IQ) moved negatively Wednesday, after signing an international distribution agreement with Viacom for the second season of children's animation series Deer Run.

The company, an innovative market-leading online entertainment service in China, today announced it has signed an agreement with Viacom International Media Networks (VIMN), a division of Viacom Inc. (NASDAQ: VIA, VIAB), to produce and distribute the second season of Deer Run.

Viacom company Nickelodeon will assist in creative production of the show, which upon completion will air on Nickelodeon's international networks outside of China, with further opportunities for Deer Run's licensing potential outside of China to be explored.

Deer Run is a 3D animated series geared toward preschool-age children, which presents the adventures of four cervine companions and the challenges they overcome. The renewed agreement follows the two companies' successful co-operation on the show's first season last year, which marked the first time an international media company acquired international distribution rights for a China-produced animated series.

The first season is set to air in 2020.

"iQIYI is excited to be partnering again with VIMN for another season of Deer Run," said iQIYI Chief Content Officer Wang Xiaohui.

"The show's engaging plot is both entertaining and educational and we predict great things for this IP going forward. iQIYI is committed to producing outstanding original content and we will continue to work with talented partners to bring the best content to our users."

Shares in IQ dropped 44 cents, or 1.7%, to $25.49, while Viacom shares gained 39 cents, or 1.2%, to $33.22