Shares of ad-tech company Magnite (NASDAQ:MGNI) jumped on Tuesday, rising as much as 11%. As of 1:50 p.m. EDT today, the stock was up 9%.
The gain follows news that Walt Disney (NYSE:DIS), a major Magnite customer, is accelerating its efforts in streaming by creating a distinct unit focused on the distribution and monetization of its streaming content.
Magnite, which has an exclusive contract with Disney's Hulu to serve all of the major streaming platform's connected-TV ad inventory programmatically, could benefit from Disney's invigorated effort to distribute and monetize streaming content.
"The new Media and Entertainment Distribution group will be responsible for all monetization of content -- both distribution and ad sales -- and will oversee operations of the Company's streaming services," Disney said in a press release on Monday afternoon. "It will also have sole [profit and loss] accountability for Disney's media and entertainment businesses."
Hulu isn't Magnite's only customer under the Walt Disney umbrella. On Oct. 1, Disney launched Disney Hulu XP, a unified digital storefront that merges ad inventory from Hulu and Disney's TV networks. The new storefront is powered by Magnite, according to Beet.TV.
Magnite, which became the largest sell-side independent ad tech company after a merger of CTV-focused Telaria and scaled ad-tech company Rubicon Project earlier this year, saw its ad sales suffer during the peak of stay-at-home orders. But management guided for sequential improvement in its business as advertisers start opening up their wallets again for the tech company.
Investors will get to see how the company is faring when it reports its third-quarter results on Nov. 9.