The Playside Studios Ltd (ASX: PLY) share price is getting a lot of love from investors on Thursday.
At the time of writing, the ASX All Ords stock is up 10% to 59 cents.
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Why is this ASX All Ords stock racing higher?
Investors have been buying the game developer's shares today after it announced a major deal with Warner Bros Discovery Inc (NASDAQ: WBD).
According to the release, the company has signed a multi-game license agreement with the entertainment giant.
The release notes that Warner Bros. has agreed to provide PlaySide with a highly recognisable intellectual property (IP) under license for the purpose of developing two PC/console game titles.
Development on the first title will commence immediately and a joint announcement concerning the details of both the intellectual property and game will be released in the first half of calendar 2024.
As part of the agreement, the ASX All Ords stock will pay Warner Bros. several license payments during the development phase of the title. This will be followed by a royalty based on revenue derived from the games during the term of the agreement.
The term of the agreement expires five years after the release of the second title.
What is the IP?
At this stage, it isn't known what the IP is. However, it is worth noting that Warner Bros. owns the IP to Batman, Superman, and the Harry Potter films.
Management remains tight-lipped but has referred to the deal as "groundbreaking".
The ASX All Ords stock's CEO, Gerry Sakkas, said:
This agreement is a groundbreaking moment for PlaySide, the culmination of years of effort building relationships with Hollywood studios and investing in our PC and Console development expertise. It is also consistent with our plans to develop larger titles.
We are huge fans of the IP we are working with and are thrilled to be entrusted with the task of bringing it to life for other fans. We are proud to be partnering with Warner Bros. Interactive Entertainment, which has a longstanding history of supporting the extension of its franchises such as Batman into video games and has enjoyed recent success with the likes of Hogwart's Legacy. I look forward to sharing more details with you soon.
