K Wave Media Completes Acquisition of Rabbit Walk

NEW YORK and SEOUL, South Korea, Jan. 26, 2026 (GLOBE NEWSWIRE) -- K Wave Media (NASDAQ:KWM), a publicly traded media and entertainment company with a Bitcoin treasury, today announced the successful closing of its first acquisition since its Nasdaq listing in 2025. K Wave Media's acquisition of Rabbit Walk, a leading visual effects, AI powered advertising, and 3D content studio, strengthens K Wave Media's creative portfolio, broadens its global content distribution reach, and reinforces financial discipline through a tied share issuance structure.

Rabbit Walk generated $11.7 million in revenue in 2025, delivering a 22 percent compound annual growth rate from 2020 to 2025 and EBIT margins of 8 to 19 percent during the same period. K Wave Media projects that Rabbit Walk will contribute approximately $15 million in revenue and $1.5 million in EBITDA in 2026. K Wave Media's revenue in 2024 was $58 million. The completed transaction marks a significant milestone in K Wave Media's growth strategy and significantly expands its creative and production capabilities.

As a result of the acquisition of Rabbit Walk, K Wave Media expects its revenues to increase by 25 to 30 percent over the next 12 months. The acquisition of Rabbit Walk also adds advanced visual effects, AI powered advertising, and 3D content production capabilities, along with an expanded global client roster that includes a 14-year relationship with Samsung Electronics and additional clients such as LG Electronics, TCL, and Hisense.

Closed Transaction Details:

Control Acquisition: Upon closing, K Wave Media acquired a 55 percent ownership stake and managerial control in Rabbit Walk through the issuance of 2,633,753 K Wave Media ordinary shares at a price of $2.50 per share.

Performance Based Contingent Equity: Approximately an additional 3 million shares, at a price of $2.50 per share, may be issued to acquire the remaining 45 percent of Rabbit Walk if Rabbit Walk achieves operating profit exceeding ₩1.2 billion KRW (approximately $800,000 USD) in either 2025 or 2026. The final share count will be determined based on the prevailing KRW to U.S. dollar exchange rate at the ...