The Walt Disney Company (NYSE:DIS) and Twitter Inc (NYSE:TWTR) announced a content creation agreement, spiking shares of both companies.
Disney will create live shows exclusively for Twitter, which will include advertising opportunity. Video accounts for more than half of its advertising revenue, according to Twitter’s quarterly report.
Other programming from Disney-owned channels may be included, such as ABC, Freeform, Marvel and Walt Disney Studio Motion Pictures.
READ: Twitter shares upgraded by Raymond James on ad strength
Disney’s own streaming channel is in the works and is expected to be available by 2019.
Twitter CEO Jack Dorsey sat on Disney’s Board of Directors up until January.
Shares of Twitter jumped as high as 4.5% to US$30.31 on Monday but were down slightly in pre-market trading on Tuesday to US$30.30.
Disney shares were up more than 1% to US$100.33 on Monday and jumped slightly in pre-market trading on Tuesday to US$100.45.