K Wave Media To Acquire 55% Stake In Rabbit Walk Via ~$6.5M Share Issuance

Author: Benzinga Newsdesk | September 02, 2025 07:28am

K Wave Media (NASDAQ:KWM), a publicly traded media & entertainment company with a Bitcoin treasury, today 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 $10.7 million 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 $58 million. With this acquisition, KWM's revenues are expected to rise 25-30% over the next 12 months while adding VFX (Visual Effects), 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.

Key Highlights of the Deal

• Control Acquisition: 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 ₩9 billion KRW (~USD $6.5 million) of KWM's ordinary shares.
• Performance-Based Contingency: A further ₩9 billion KRW (USD $6.5 million) of equity will be issued only if Rabbit Walk achieves operating profit exceeding ₩1.2 billion KRW (~USD $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.

Posted In: KWM