K Wave Media shares surge 15.31% intraday after acquiring Rabbit Walk, projecting 25–30% revenue growth.

K Wave Media (KWM) surged 15.31% intraday after announcing the completion of its acquisition of Rabbit Walk, a visual effects and AI advertising studio. The deal, structured with a 55% stake via 2.63 million shares at $2.50, projects Rabbit Walk to contribute $15 million in revenue and $1.5 million in EBITDA in 2026, driving K Wave’s projected 25–30% revenue growth over the next 12 months. The acquisition adds Samsung and other major clients, strengthens creative capabilities, and aligns with K Wave’s post-IPO growth strategy. The performance-based contingent equity (up to 3 million additional shares tied to Rabbit Walk’s profitability) signals confidence in the target’s financial discipline, while the transaction’s immediate accretion to revenue and margins likely fueled investor optimism.