Shares of Snap Inc. (NYSE: SNAP) surged nearly 3 percent after the company announced a new deal with Time Warner to make new shows.
Under the deal, Time Warner will create up to 10 original shows for the image messaging company. Each show will last for 5-10 minutes. The shows include scripted dramas and comedies. Snap will also got advertisements from HBO, Turner and Warner Bros.
The deal is valued at $100 million, according to people familiar with the matter.
Snap share was trading up 1.8 percent to $17.85 at 3:00 p.m. on Monday. The stock had dropped to its IPO price at $17 last week.
"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 has been under pressure these days as investors are concerned about the monetization pace of the instant messaging and video app company, as well as the increasing competition from Facebook and its Instagram.