WEBTOON Entertainment struck an agreement with Warner Bros. Animation to develop 10 animated adaptations of popular webcomic series, the latest effort by the unprofitable digital storytelling platform to monetize its content library through Hollywood partnerships.
The companies intend to co-produce fan-favorite titles from WEBTOON’s Korean and English-language platforms for global distribution, though no release dates have been set and the projects remain in early development stages. The initial slate includes four titles: fantasy series “The Stellar Swordmaster” and gaming-themed “Hardcore Leveling Warrior” from Korea, alongside English-language properties “Down to Earth” and “Elf & Warrior.”
Original webcomic creators retain intellectual property ownership and will receive revenue shares from adaptations, according to the company’s chief strategy officer Yongsoo Kim.
The Warner Bros. arrangement follows WEBTOON’s September partnership with Walt Disney, which agreed to acquire a 2% equity stake while collaborating on a new digital comics platform housing over 35,000 titles from Marvel, Star Wars and other Disney properties. The Disney deal sent WEBTOON shares surging 39% and marked the stock’s second-largest one-day advance since its 2024 initial public offering.
Yet underlying business fundamentals remain challenging. WEBTOON reported third-quarter revenue of $378 million, up 8.7% from a year earlier, but posted a net loss of $11.1 million. Monthly active users across WEBTOON’s platforms in Korea, Japan and other markets fell 7.6% year-over-year in the second quarter to 156.1 million. The company projects fourth-quarter revenue declining as much as 5.1% on a constant currency basis.
