K Wave Media Announces First Acquisition Post-NASDAQ Listing, Eyes 30% Revenue Boost

K Wave Media (NASDAQ: KWM), a NASDAQ-listed company, announced its first acquisition since going public. The company is set to enhance its VFX and AI-based content production capabilities by acquiring Rabbit Walk, a leading B2B VFX firm known for its AI-driven advertising and 3D content expertise. This acquisition will also bring global giants like Samsung Electronics, LG Electronics, TCL, and Hisense into KWM's client portfolio. KWM anticipates a revenue increase of up to 30% within the next 12 months as a result of this acquisition.

Rabbit Walk, established in 2010, has produced over 1,400 advertisements and brand videos, solidifying its position in the industry. The company has maintained a 14-year partnership with Samsung Electronics and serves other major media and electronics brands worldwide.

KWM plans to issue approximately $6.5 million worth of common stock to acquire a 55% stake in Rabbit Walk, securing management control. If Rabbit Walk exceeds an operating profit of $800,000 in 2025 or 2026, KWM will issue additional shares worth $6.5 million.

Through this acquisition, KWM aims to internalize Rabbit Walk's production pipeline and technology, significantly expanding its content capabilities and accelerating its growth strategy. Additionally, KWM will integrate Rabbit Walk's major media and electronics clients into its portfolio, ensuring a stable global B2B customer base.

From a financial perspective, the synergy is promising. KWM's annual revenue was approximately $58 million last year, and the acquisition is expected to boost overall revenue by up to 30% within the next year. Rabbit Walk has maintained an average annual revenue growth rate of 22% and an operating profit growth rate of 16% since 2020, recording $10.62 million in revenue in 2024.

KWM expects the expanded content pipeline and global client portfolio from the Rabbit Walk acquisition to create new growth momentum, aligning with its Bitcoin financial strategy.

In addition to expanding content capabilities, KWM is focusing on building Web3 and blockchain-based commerce and payment infrastructure. The company plans to transition its content-centric business model to a technology-based one, expanding into global IP distribution, AI and AR merchandise, and other areas. This strategy aims to create a new media business model that integrates content, technology, and finance.

KWM's future strategy was detailed at the 'Bitcoin Asia 2025' conference, the world's largest Bitcoin conference held at the HKCEC in Hong Kong last month. Ted Kim, CEO of KWM, was a keynote speaker, presenting on the 'Bitcoin Reserve Strategy of $500 Million,' introducing a new financial strategy and content distribution vision combining K-content and blockchain technology.

Ted Kim, CEO of KWM, stated, "This acquisition reflects KWM's commitment to sustainable growth through performance-linked partnerships. The combination of Rabbit Walk's impressive content pipeline with KWM's global network and Bitcoin financial strategy is expected to transform us into a more powerful and differentiated growth platform."

Reported by Jiwon Kim, TenAsia bella@tenasia.co.kr