Shares of Snap (NYSE: SNAP) took on a new life on Monday after the announcement of a new deal with Time Warner (NYSE: TWX)
Time Warner will make shows such as scripted dramas and comedies for the messaging and augmented reality platform. The two companies also said that Snapchat will also get ads from HBO, Turner and Warner Bros. over the next two years.
Those in the know say the deal is valued at $100 million. The Wall Street Journal, which had reported the news earlier on, said that talent like Ellen DeGeneres and Samantha Bee could be part of the arrangement.
The two companies also said the number of shows each day on Snapchat will grow from one per day to three per day by the end of this year.
In March, Snap inked a deal with MGM to produce original short-form video. The company also has deals with ABC, NBC, ESPN, the NFL, Turner, BBC, Vice Media, A+E Networks, and Discovery Communications, among others.
By adding Time Warner to this roster, Snap is looking to significantly increase the number of originals on its platform. Currently, Snap and its content partners publish about one new original episode per day on the service. The company is aiming to have three new episodes per day by the end of the year.
Snap shares were trading at $17.90 mid-afternoon Monday, 36 cents, or 2.1%, ahead of Friday’s close, within a 52-week trading range of $17.00 to $29.44.
Time Warner, for its part, gained 65 cents to $99.85 Monday afternoon.