The film 'No Other Choice' investment firm T Wave Media is acquiring Rabbit Walk.
On the 4th, K Wave Media (K Wave Media, NASDAQ: KWM) announced its first merger and acquisition (M&A) since its NASDAQ listing. KWM aims to enhance its content production capabilities based on VFXAI through this acquisition while securing top global corporations such as Samsung Electronics, LG Electronics, TCL, and Hisense as clients. In particular, KWM anticipates a revenue increase of up to 30% within the next 12 months as a result of this transaction.
The target of the acquisition, Rabbit Walk, is a B2B VFX corporation that possesses top-tier technology in the fields of AI-based advertising and 3D content. Since its establishment in 2010, it has solidified its position in the industry by producing over 1,400 advertisements and brand videos for more than 15 years. It currently has global media and electronics brands such as Samsung Electronics, LG Electronics, TCL, and Hisense as clients, with which it has maintained partnerships for 14 years.
KWM plans to acquire a 55% stake in Rabbit Walk by issuing approximately 9 billion won (6.5 million dollars) of its common stock, thereby securing management control. If Rabbit Walk exceeds an operating profit of 1.2 billion won (approximately 800,000 dollars) between 2025 and 2026, it plans to issue additional stock valued at 9 billion won.
Through this acquisition, KWM will significantly expand its content-related capabilities by internalizing Rabbit Walk's production pipeline and technology, thereby accelerating its growth strategy. Additionally, it will integrate Rabbit Walk's major media and electronics clients into its own portfolio, enabling it to secure a stable global B2B customer base.
From a financial perspective, synergistic effects are expected. Based on last year, KWM's annual revenue was approximately 80.8 billion won (58 million dollars), and it is anticipated that total revenue will increase by up to 30% within the next 12 months following this acquisition. Rabbit Walk has maintained an average annual revenue growth rate of 22% and an operating profit growth rate of 16% from 2020 until last year, recording sales of approximately 14.8 billion won (10.62 million dollars) in 2024.
In particular, KWM expects that the expanded content pipeline and global client portfolio resulting from the acquisition of Rabbit Walk will create new growth momentum aligned with its Bitcoin financial strategy.
In fact, KWM is also focusing on building a Web3 and blockchain-based commerce and payment infrastructure alongside the expansion of its content capabilities. In the mid- to long-term, it plans to transition its content-centered business structure to a technology-based model and expand into various areas, including global IP distribution and AI and AR merchandise businesses. Through this, it aims to realize a new media business model that integrates content, technology, and finance.
KWM's future strategy was solidified at the world's largest Bitcoin conference, 'Bitcoin Asia 2025', held on the 28th of last month at the Hong Kong Convention and Exhibition Centre (HKCEC). Ted Kim, the CEO of KWM, was invited as a keynote speaker and received a warm response for his presentation on the theme of 'a 500 million dollar Bitcoin reserve strategy,' which introduced a new financial strategy combining K-content and blockchain technology.
Ted Kim, CEO of KWM, said, "This acquisition reflects KWM's commitment to sustainable growth in terms of building performance-linked partnerships, serving as a first case." He added, "The overwhelming content pipeline of Rabbit Walk combined with KWM's global network and Bitcoin financial strategy is expected to evolve into a more powerful and differentiated growth platform."
KWM is a key investor in films such as 'Big Deal' and 'No Other Choice'. It has subsidiaries including Biandan, Apyeonida, The Lamp, Studio Anjailen, Play Company, and Solare Partners.
[Photo] K Wave Media logo.
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