K Wave Media Accelerates Growth with First Acquisition Since IPO, Acquiring a Visual Effects and AI-Powered Advertising Company, Expanding to Become a Tier-1 Technology Company.

K Wave Media, a media and entertainment company listed on NASDAQ, has announced its first acquisition since going public - a strategic move to accelerate growth and expand its core capabilities. The acquisition of Rabbit Walk, a visual effects, AI-driven advertising, and 3D content creation studio, is expected to strengthen KWM's creative portfolio, expand its distribution reach, and improve financial discipline through a mechanism of tied equity issuance. The acquisition is expected to increase KWM's revenue by 25-30% in the next 12 months, adding clients such as Samsung Electronics, LG Electronics, TCL, and Hisense.

New York and Seoul, South Korea, September 02, 2025 (GLOBE NEWSWIRE) – K Wave Media (NASDAQ: KWM), a publicly traded media and entertainment company with a Bitcoin treasury, has announced its first acquisition since its NASDAQ listing. The strategic move aims to accelerate growth and expand its core capabilities by acquiring Rabbit Walk, a leading visual effects, AI-driven advertising, and 3D content creation studio.

Rabbit Walk, founded in 2010, has a strong reputation for producing over 1,400 commercials and brand films for prestigious clients, including Samsung, LG, TCL, and Hisense. The acquisition will see KWM securing a 55% controlling stake in Rabbit Walk for approximately $6.5 million in KWM shares. The deal includes a performance-based contingency of an additional $6.5 million in equity if Rabbit Walk achieves operating profit exceeding ₩1.2 billion (~$800,000) in either 2025 or 2026 [1].

The acquisition is projected to increase KWM's revenues by 25-30% over the next 12 months. Rabbit Walk's 2024 revenue of $10.7 million, with a 22% CAGR during 2020-2024, will significantly impact KWM's 2024 revenue of $58 million [1]. The projected revenue increase represents an excellent growth accelerator for a newly public company.

Beyond financial metrics, this acquisition delivers three strategic advantages. Firstly, it expands KWM's technical capabilities in AI, VFX, and 3D content. Secondly, it provides entry into the high-value electronics sector through relationships with Samsung, LG, TCL, and Hisense. Lastly, it enhances KWM's positioning for its stated Web3/tokenization ambitions through Rabbit Walk's virtual production and generative AI expertise [1].

The performance-contingent structure limits dilution risk while creating aligned incentives. The all-equity transaction preserves KWM's capital position, transforming it from a content producer into a more diversified entertainment technology company with enhanced revenue growth potential [1].

The acquisition is expected to bolster KWM’s creative portfolio, enhance content distribution reach, and reinforce financial discipline through the tied-share issuance mechanism [1]. This move demonstrates KWM's commitment to scaling into a world-class content producer and digital asset manager, leveraging Rabbit Walk's virtual production and generative AI technology [1].

References:
[1] https://www.stocktitan.net/news/KWM/k-wave-media-accelerates-growth-with-first-acquisition-post-listing-z8d1ksk64xnk.html