K Wave Media to acquire 55% stake in Rabbit Walk

K Wave Media (KWM) announced its first acquisition since its NASDAQ listing-an exciting strategic move that accelerates its growth strategy and expands its core capacities. The acquisition is expected to bolster KWM’s creative portfolio, enhance content distribution reach, and reinforce financial discipline through the tied-share issuance mechanism. Target recorded $10.7M revenue in 2024 with compound annual growth rate of 22% during 2020-2024 and 12-19% EBIT during 2020-2024. KWM’s revenue in 2024 was $58M. With this acquisition, KWM’s revenues are expected to rise 25-30% over the next 12 months while adding VFX, AI-powered advertising, and 3D content creating capacity to its content production with some of the world’s most recognized names as new clients – including a 14 year relationship with Samsung Electronics, and others including LG Electronics, TCL, and Hisense. At the closing of the transaction, KWM will acquire a 55% stake, with managerial control in Rabbit Walk, a distinguished visual effects, AI-powered advertising, and 3D content studio, by issuing $6.5M of KWM’s ordinary shares. A further $6.5M of equity will be issued only if Rabbit Walk achieves operating profit exceeding ~$800,000 in either 2025 or 2026. The precise number of shares will be based on the then-current exchange rate between KRW and U.S. Dollars. The shares will not be issued if Rabbit Walk does not meet this profitability threshold. Founded in 2010, Rabbit Walk has earned a strong reputation as a top-quality visual effects, AI-powered advertising, and 3D content studio, having produced over 1,400 commercials and brand films, including high-end demo content for Samsung’s ViewFinity S9 displays and advanced CGI/8K live-streaming productions. Rabbit Walk’s client base includes major global electronics and media brands, with long-standing partnerships that highlight its creative and technical expertise.