Time Warner, Snapchat agree to $100 million content partnership

Lucas Jackson | Reuters

Snap cofounders Evan Spiegel (C) and Bobby Murphy ring the opening bell of the New York Stock Exchange (NYSE) with NYSE Group President Thomas Farley shortly before the company’s IPO in New York, U.S., March 2, 2017.

Shares of Snap snapped back to life on Monday after the announcement of a new deal with Time Warner.

Time Warner will make shows such as scripted dramas and comedies for the ephemeral messaging and augmented reality platform. Snapchat will also get ads from HBO, Turner and Warner Bros. over the next two years, the companies said in a statement.

The deal is valued at $100 million, according to people familiar with the matter. The Wall Street Journal, which previously reported the news, said that talent like Ellen DeGeneres and Samantha Bee could be part of the arrangement.

The number of shows each day on Snapchat will grow from one per day to three per day by the end of this year, the companies said.

“This partnership is another exciting step as we continue to branch out into new genres, including scripted dramas, comedies, daily news shows, documentaries and beyond,” Nick Bell, vice president of content for Snap, said in a statement.

Snap shares rose about 3 percent, breaking above $18 a share mid-day Monday. Shares of the company closed at their IPO price of $17 a share on Thursday, after struggling to gain traction in the markets after March’s public offering.

— With reporting by CNBC’s Mike Newberg and Bob Pisani