Snap, Time Warner launch $100M content, advertising deal
Snap Inc. and Time Warner announced a two-year content and advertising partnership Monday, reportedly valued around $100 million. Per the agreement, Time Warner will commit to developing and promoting made-for-Snap shows from brands across its portfolio (HBO, CNN, TBS, etc) and will invest in advertising from HBO, Turner and Warner Bros. on Snapchat over the next two years.
Why it matters: The announcement comes at a crucial time for Snap Inc., whose stock had fizzled down to its $17 IPO price after months of Facebook and Facebook-owned Instagram installing copycat features on their platforms. The company has been at the forefront of launching exclusive original partnerships for its mobile platform, but the heavy content and advertising investment from a major cable company takes their Discover platform business to the next level, which will likely invigorate investor confidence in the brand.