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Snap Secures Time Warner Partnership On Content, Ads

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Snap Secures Time Warner Partnership On Content, Ads
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Time Warner Inc (NYSE: TWX) on Monday announced a $100 million partnership with Snap Inc (NYSE: SNAP) to produce bite-sized dramas and comedies for the platform. The deal involves two years of ads and up to 10 original shows from Time Warner properties HBO, Turner and Warner Bros.

The content is said to feature celebrities such as Ellen DeGeneres and Samantha Bee, according to a report by the Washington Post, and is part of Time Warner’s strategy to appeal to younger viewers.

"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,” Gary Ginsberg, Time Warner executive vice president of corporate marketing and communications, said in a press release. "We're confident this partnership will help drive larger audiences to our shows and to the new direct to consumer platforms we continue to rollout."

At the same time, the deal bolsters the attraction of a social media brand that has struggled since its initial public offering in March.

Snap already entertains content partnerships with the likes of CBS Corporation (NYSE: CBS), Comcast Corporation (NASDAQ: CMCSA)’s NBC, Discovery Communications Inc. (NASDAQ: DISCA), Scripps Networks Interactive, Inc. (NASDAQ: SNI) and Walt Disney Co (NYSE: DIS)’s ABC, ESPN and A+E Networks.

With the latest deal, the company intends to expand its daily lineup from one show to three by the end of the year and widen its scope to include animated content and documentaries.

Snap shares spiked up 7.2 percent off intra-day lows on the news, while Time Warner popped about 0.7 percent. At time of publication, Snap waned to trade up a mere 1.4 percent at $17.79 on the day.

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