K Wave Media, a publicly traded media and entertainment company with a Bitcoin treasury, announced its first acquisition since its NASDAQ listing on May 14, 2025. The acquisition of a 55% stake in Rabbit Walk, a leading South Korean visual effects, AI-powered advertising, and 3D content studio, was disclosed on September 2, 2025. This strategic move enhances KWM’s creative portfolio and is projected to increase revenues by 25-30% over the next 12 months.
Acquisition Date: September 2, 2025
Target: Rabbit Walk, a Gangnam-based 3D visual content studio
Deal Structure: 55% stake for ₩9 billion (~$6.5M USD) in KWM shares; additional ₩9 billion contingent on ₩1.2 billion (~$800,000 USD) operating profit in 2025 or 2026
Rabbit Walk 2024 Revenue: $10.7M, with 22% CAGR (2020-2024) and 12-19% EBIT
KWM 2024 Revenue: $58M
New Clients: Samsung (14-year relationship), LG, TCL, Hisense
Strategic Focus: Virtual production, generative AI, Web3 content, tokenized IP rights
K Wave Media acquires a controlling 55% stake in Rabbit Walk for ₩9 billion (~$6.5M USD) in ordinary shares, with managerial control. A performance-based clause allows for an additional ₩9 billion in equity if Rabbit Walk achieves an operating profit exceeding ₩1.2 billion (~$800,000 USD) in 2025 or 2026, with share issuance tied to the KRW-USD exchange rate. If the profit threshold is not met, no further shares will be issued, minimizing dilution risk. Founded in 2010, Rabbit Walk has produced over 1,400 commercials and brand films, including high-end demo content for Samsung’s ViewFinity S9 and advanced CGI/8K live-streaming productions.
Rabbit Walk’s 2024 revenue of $10.7M, with a 22% compound annual growth rate (2020-2024) and 12-19% EBIT, complements KWM’s $58M revenue in 2024. The acquisition is expected to boost KWM’s revenues by 25-30% within 12 months, driven by enhanced capabilities in visual effects (VFX), AI-powered advertising, and 3D content creation. The deal adds prestigious clients like Samsung Electronics (14-year relationship), LG Electronics, TCL, and Hisense, expanding KWM’s global reach. “This acquisition reinforces our commitment to scaling K Wave Media into a world-class content producer and digital asset manager,” said Ted Kim, CEO of K Wave Media.
The acquisition aligns with the $150 billion global VFX and digital advertising market, where AI-driven solutions are increasingly critical. Rabbit Walk’s expertise in generative AI and virtual production positions KWM to lead in Web3 content creation and tokenized IP rights, tapping into the growing $2.5 billion Web3 entertainment sector. The deal strengthens KWM’s competitive stance against firms like CJ ENM and Studio Dragon, leveraging Rabbit Walk’s established client base and technical prowess.
K Wave Media (NASDAQ: KWM) is a publicly listed entertainment and Bitcoin treasury company focused on creating, distributing, and monetizing high-quality content across multiple platforms. Since its NASDAQ debut in May 2025, KWM has pursued strategic growth through investments in production houses, digital platforms, and digital asset treasury management, including a $1B Bitcoin-focused capital strategy.
Rabbit Walk, headquartered in Gangnam, South Korea, is a leading 3D visual content studio specializing in high-resolution CGI, demo content, and brand storytelling. With over 1,400 projects for global brands, it is a trusted partner in the Korean entertainment and media industry, known for its innovative VFX and AI-driven advertising solutions.
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