K Wave Media shares surge 17.13% premarket after completing Rabbit Walk acquisition, projecting 25-30% revenue growth.

K Wave Media surged 17.13% in premarket trading following the announcement of its acquisition of Rabbit Walk, a visual effects and AI advertising studio. The $2.50/share issuance of 2.63 million shares for a 55% stake, along with potential contingent shares for the remaining 45%, underscores strategic expansion. The deal is projected to boost K Wave’s revenue by 25–30% over 12 months, leveraging Rabbit Walk’s $11.7 million 2025 revenue (22% CAGR) and global client relationships, including Samsung. CEO Ted Kim highlighted the acquisition as “immediately accretive,” emphasizing enhanced creative capabilities and disciplined capital allocation. The transaction aligns with K Wave’s growth strategy post-2025 Nasdaq listing, reinforcing its position in high-growth media and entertainment markets.